lounge business plan in nigeria

Business Ideas

How to start bar business in nigeria (secret guide).

One of the profitable businesses in Nigeria is a lounge or bar business also known as beer parlour business. Bar business is profitable because all Nigerians drink and they love to have a good time relaxing after the day’s job and during weekends. Although we have a huge number of Nigerians that drink alcohol we have other than some who do not drink.

But even at this Nigerians who do not drink alcohol still love to have a good time by drinking juice or Chapman or soft drinks as a form of relaxation. Asides from the huge demand for alcoholic drinks and non-alcoholic drinks in Nigeria as a form of relaxation, there are also foods like pepper soup, roasted fish, asun, and suya that are in demand in bars.

In Nigeria, bar business or lounge is lucrative as long as you get a few things right. Some of these things are location, customer attraction , customer service, and the ability to keep drinks and foods well. So far in Nigeria, I have visited a few bars, especially in Lagos, and what I can tell you their owners make money week in and week out.

When other jobs or work closes at 5 PM every weekday in Nigeria bar business begins at 6 PM and never ends till daybreak. It is said that they make more money during weekends as they open at 12PM and close 6AM. In a bar business, there are things you need to also put in place to make things run well.

Things like security and also rules and regulation for everyday customers because it is often said anywhere there is no law there’s no sin. I am saying this because I have witnessed some bars closed down all in the name of fights that got people injured or killed. Security, rules, and regulations protect you and your bar business from customers and the government.

Is Bar Business Profitable?

Beer parlour business is a profitable and lucrative business in Nigeria as long as you know how to attract your customers and retain your customers and you are able to get your drinks from the right places with favourable prices.

Whether it is beer, palm wine, cocktail drinks or alcoholic drinks, or non-alcoholic drinks as long as you know where you can buy these drinks at the lowest prices and are able to sell them at a higher price you will make huge profits. An example is a beer bought at N179 and sold at N250.

It is also profitable or lucrative because you make money from the business every day not only on drinks but on other businesses you operate in the bar lounge-like sales of food, operation of a relaxation center, and establishment of a football viewing center .

Capital Needed to Start Bar Business

To start a bar or lounge business in Nigeria you will need a capital of N500,000 – N2,000,000 as the capital you need depends on the area you want the business to be. If it is in a low-income area – a rural area the capital you will need to start the bar business cannot be more than N500k.

But if the area you want to set up the bar business in an urban area it will cost you more – probably up to N2M. This capital can be self-invested if you have the money or borrowed from a reliable source but my best advice here is that you start with what you have and as time goes by grow the business.

Equipment Needed for Bar Business

There are the equipment needed when it comes to starting a bar business, beer parpour business, or lounge business in Nigeria. These are:

1. Refrigerators

2. Wine shelves

3. Television

4. Generator

8. Wine and Beer cups

To put all the electric equipment in their right places you might need the services of an electrician and to put all the furniture in place you might need the services of a carpenter.

Drinks Sold in Lounge Business

Below are the different types of drinks you can sell for your bar business in Nigeria. These are:

2. Soft drink

3. Wine (Red and Other Kinds of Wine)

5. Cocktails

6. Water (Bottled)

7. Energy drinks

Now, let’s go on to discuss how to start and run a bar in Nigeria.

How to Start Beer Parlour Business in Nigeria

How to start and run a profitable bar business in Nigeria.

1. Get the Required Capital

When it comes to opening a bar business in Nigeria or a lounge business or a beer parlour business the first step you need to take is getting your capital. As we usually say capital is important in any business except of cause you’re into charity business. You need capital not just to rent a shop or space but also to buy furniture, lights, cooking equipment, and drinks.

And the larger the capital you invest in your bar business the bigger the profits you will make in the business. It is just like any other business in Nigeria as regards capital.

2. Rent a Shop or Space

When it comes to setting up a bar business in Nigeria you can either rent a shop or space. A shop is good in the sense that it permits your bar business to be on the side of any major road of your choice while space is good as it helps you to accommodate more customers in one sitting.

Basically, if you rent a space your customers will not need to wait for each other before they can have seats to relax and drink. If it is a shop you can have about 30 customers at a sitting but if it is a space you can have as many as 100 customers at a sitting depending on how big the space is and how you are able to manage it.

Asides from considering whether to rent a shop or space for your bar business you need to also consider the location where you want the bar to be. Remember your business is about selling foods and drinks to Nigerians. You cannot sell if your bar business is located where people cannot see you or find you easily.

Make sure any place you are renting for your bar business is a place where thousands of likely customers pass every day whether on their way back from work or on their way out of their houses.

3. Set up your Bar Business

After you have gotten your shop or space the next step you should take is to set up your bar. In setting up your bar you need to consider the positions where your wine counter will be, the kitchen, store, refrigerators, generator, and furniture (table and chairs) for customers. In this case, it is best for your kitchen and store to be in an area where people will have less access to.

Only your bar workers should have access to these areas. Let us quickly talk about the important equipment you will need to set up a bar business in Nigeria.

4. Buy your Drinks Wholesale

After installing the equipment in your bar and making sure everything is fine, proceed to buy the drinks for your bar. These drinks should be bought assorted so as to be able to satisfy each customer’s need. Also, it should be bought from wholesalers so that you can get the drinks at their lowest prices and to be able to sell at any price you desire.

Since beer is the cheapest alcoholic drink and the highest drink in demand at bars you can buy more of it than any other drink. Shoprite buys all its drinks from wholesalers sometimes even from the manufacturing companies itself. This is why their drinks are the cheapest compared to drinks sold in any other malls or shops.

Although Shoprite cannot be considered a bar business it still shows us how they are wise in their buying. All drinks (beers, wine, spirits, and champagne) should be bought and stored in a store with lock and key.

5. Start Selling Drinks

Since your business is different because you open at night instead of the day you can use the daytime to prepare ahead. During the day time, you can put all drinks needed for the night in the fridge and also go to the market to buy foodstuff for customers that will likely order some food alongside their drinks.

Food ingredients like, fish (croaker and catfish), goat head, pepper soup ingredients, and the like should be bought and kept in the fridge till they will be needed at night by customers. Note: Catfish should be kept alive for customers who like to point and kill.

On the evening of the first day of business, open your bar, and make the place lively by playing some loud music this will attract customers into the bar. Also, invite your friends and family to your bar to come hang out there.

6. Employ Helping Hands

Some tips on how to run a bar. Bar business can be very tiring especially when you have too many customers on ground to attend to at the same time so to reduce the stress you can employ other people that can help you run the business. If you cannot employ staff because of the inability to pay them salary, for now, you can employ your family to help and give them tips instead.

7. Keep your Bar Clean Always

Hygiene is very important in a bar. The inability to maintain this can cause unpleasant smells and this is not good for your customers and sanitation officers that will be coming around for inspection often. They can lock down your bar business just because of this so it is very important to keep the bar clean before and after the close of business.

8. Manage Bar Expenses

Expenses like electricity bills can be a huge expense if you run your bar business both on NEPA and generator so my best advice for you here is to cut off your business from NEPA and run only on gen – putting on your gen only during business hours.

9. Attracting Customers in the Bar

There are different ways you can attract customers to your bar business in Nigeria. Some of these are:

A. Give Good Customer Service

Although this sounds like a cliché good customer service is still scarce when you visit bars today. So you can attract more customers to your bar by just giving quality customer service to people who will be visiting your bar, especially the first-timers.

B. Provide Adequate Security

I talked about this briefly in my introduction. No one will want to be in a place where they are not sure of their security which includes their lives and property. You can attract customers to your bar by providing security in and around your bar. When customers know that they are safe anytime they come to relax they will always want to visit your bar.

C. Encourage Live Events and Parties

You can also attract huge customers to your bar business by encouraging and allowing people to host their birthday bashes and live events like comedy shows. For a start you can charge for a token for these events and as time goes by increase the charges. You will also be making profits by doing this because they will buy drinks needed for the events from you.

Bar business in Nigeria is lucrative if you can follow all tips given in this article. Remember that you can start small for now and as time goes by grow the business.

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How to Start a Bar Business in Nigeria

The bar business is one of the most lucrative business in Nigeria.

Research has it that most people love to hangout in bar, or cool off after a hectic day at work, and they do so in bars.

That’s it, you decide to get started: you’re going to open a bar! Between dream and reality, there are many steps to take before realizing such a business project.

In particular, it will be impossible to open the doors of your bar without having followed certain procedures.

What steps should be followed before opening a bar? How to draw up a business plan? How much does the initial investment cost to open a bar? Find all these answers in this article.

This post will provide useful tips on how to start bar business in Nigeria and make huge profit.

1. Create a Business Plan

Your drinking and liquor bar business plan is the written expression of your start-up commercial and financial strategy.

It allows you to take note of your progress, your strategy and the means at your disposal… Where are you? What do you have at your disposal? What do you need ? What are the next steps ?

Start by defining your business project, the reason that makes you want to open a bar so much.The type of bar you intend to establish.

Types of Bar You Can Open

Below are some types of drinking bar to step up in Nigeria and make profits.

• Neighborhood Bar
• Specialty Bar
• Tapas Bar, Shisha bar

Once the concept has been determined, choose your visual identity, the name of the bar, and even a logo! Whether on the internet or on site, your establishment must stand out and be easily identifiable.

2. Find Funding

Today, it is estimated that it takes between N250,000 and N400,000 to finance the opening of a bar in Nigeria.

It is difficult to manage alone to reach this amount, but there are solutions such as bank loan, or grants,savings, borrowing from family and friends.

Start by defining a broad budget (rent, charges, salaries, equipment, training, etc.), and estimate the time it will take to become profitable.

3. Choose a Legal Status

Opening a bar requires creating a company. In Nigeria, the most used form is the Limited Liability Company.

It can have between 2 and 100 partners, with different responsibilities depending on their contributions. You can also decide to run a sole proprietorship

4. Find the Right Business Premises

The commercial space is the place that you will rent or buy to make your bar.

You will have to visit several to find the right one, so it is best to have detailed your needs beforehand.

To make your choice, several elements will be taken into account:

Good location : busy area, beautiful storefront, close to your target..

Suitable area : Each additional square meter has a cost. Depending on your project, you will not necessarily need the largest space in your city.

Consider getting a good layout can make the difference and allow you to accommodate enough visitors.

Also consider finding a room with a terrace, which will allow you to attract more people.

Accessibility : public transport and parking spaces nearby.

The current state of the premises: is it new? Should all the plumbing be redone?

Development and decoration work will be necessary so that the room is in line with the identity of your concept, but anticipate the budget that more substantial work will represent.

5. Equip that Bar

Once the commercial space has been found, it is time to bring it to life.

Determine all the equipment you need, from furniture to decoration.

Equipment to Equip a Bar in Nigeria (non-exhaustive list):

• Shaker and other cocktail utensils
• Chairs/stools/sofas
• Ice machine
• Glass washer

You can request different quotes to estimate the cost of your equipment, the creation of a custom counter, etc.

But you have to see it as an investment, since by equipping yourself with durable and timeless equipment you will be able to last over time.

6. Recruit the Right Team

One of the key elements that will make your bar strong is your team members.

Depending on the size of your local, you will be able to determine the different positions you will need, what type of contract to recruit them under, and more.

Make sure you have a cohesive team, and that you have had the time to train it and integrate it well before opening your doors.

7. Announce the Opening of the Bar

Now that you’ve followed all the steps to open a bar, you should be ready.

But for a successful first day, you have to promote your event well to attract as many people as possible.

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A bar a place where alcoholic drinks can be bought and drunk and sometimes food served. It a cool-off spot where people relax after a busy or boring day, either briefly or for an extended period of time.

Bar lounge business is very lucrative in Nigeria. Why? The reason is unrelated to the appetitive nature of Nigerians. Capitalizing on this opens a beautiful door to making money for anyone taking up this business idea. Interestingly, it can be run with low capital with anticipated voluminous profits.

This article is in three parts. First, I review the profitability analysis of the business. Secondly, I discuss the market demand analysis of the business.

Read Also: 8 Best Yoruba Foods You Should Not Miss

Finally, I show you the steps to start and succeed in bar lounge business. Now, let’s start with a review the profitability analysis of in bar lounge business.

Profitability Analysis For Bar Lounge Business in Nigeria

A sneak peek into the profitability potentials of bar lounge business reveals the following:

For a Common Bar Lounge business;

A carton of bear contains which about 12 or 24 bottles sales for N2, 300 or N4,600 at cost price. Selling each bottle for N200 or N250 gives roughly 250 X 12 = N3, 000.

So, the profit per carton is thus N700. If you sell say 10 cartons is sold a day, you will make a profits of #7, 000. This figure multiplied by 24 days (excluding Sundays) give N168, 000 per month.

For the expensive bar lounges, we have that a carton of drink goes for the same N2, 300 at cost price. This can be sole for say N500 per bottle.

So, N500 X 12 = N6000. So, the gain there is (N6000 – N2300 = N3700) Now selling 10 cartons gives you N37, 000. Imagine you make this daily for 30 days!

Market Structure/Demand Analysis:

Is there a market for bar lounge business in Nigeria? Yes, there is. Nigerians typically like to club and party and this happens on a daily basis.

However, the rate of clubbing and partying increases in the weekends from Friday night. That is when people take their friends and loved ones out to club and party.

So, if you go into this business, you will not fail because of the ever-increasing appetitive and entertainment-laden nature of Nigerians.

Read Also: How to start Fast Food Business in Nigeria

What You Need To Start Bar lounge business in Nigeria:

1. knowledge, training & skill needed.

You don’t need a certificate for this or much training. All you need to first serve as in clubs and bars and see how things are done there. After some time, you can simply open your own bar lounge and start accepting customers

2. A Good Business Plan

It is good to get a Bar lounge business plan. This will serve as a documented blueprint of the business from start to growth. If you cannot develop one, you may contact us. We handle that for a token while you take care of other things.

Basically, a Bar lounge business plan will show:

1. How you will run the business

2. Where how to raise capital

3. Where and how to market your business to target customers

4. Profitability approaches

3. A Well-Done Feasibility Study/Research

Bar lounge business is highly competitive. So, you need to research well before you kick start. Do an extensive research and ask questions on what new innovations customers will need in a bar lounge.

With this idea, launch out with an innovative model to meet customers’ needs. Ask the experts how much is required for a start, where to buy such products at a cheaper rate. Look for what people are not doing but will help and include in your business.

Read Also: Top 10 Fastest Growing Businesses in Nigeria Currently

4. Startup Finance

Without including money for the bar space, you need around N800, 000 to get the basic equipment and another N200, 000 to handle miscellaneous.

Some of the basic equipment you will need includes a refrigerator, a generator, sound systems, lighting systems, drinks etc.

You will also need sales girls, waiters or bar attendants, at least two (2). If we are to include renting/space we will be talking about N1.5m. However, to run an expensive, elegant type of bar lounge in Nigeria you will need around #3,000,000 to setup.

5. Appropriate Licenses And Permits

You may need a license from the government to run a Bar lounge in Nigeria.  Since you are dealing with alcoholics drinks, you must be a registered, licensed operator. Register and get permits with the necessary authorities of the government to operate without any hassles.

6. Tools/Equipment

Some of the tools you need for this business include:

1. Standard refrigerators – at least 2.

2. Chairs, preferably cushion chairs (or Strong plastic chairs )

3. Plastic, wooden or glass tables

4. Air conditions. This will be used for cooling the house and sending off heat.

5. Games e.g. snooker, squash, ludo etc.

Read Also: How to start a food supply business in Nigeria

6. TV sets connected to pay TV channels. This will be used to showcase live and previous football matches and other sports to customers while at the bar.

7. Standing fans

8. Lighting sets

9. Good sound systems

10. Live band and DJ Services

7. A Nice Business Location

Locate the business in a busy environment, preferably close to companies, factories or schools. After work or during a break, people will see your place as a relaxing spot to cool off with drinks.

Bar Lounge Management Practices

(8) proper staffing & business advisers.

You may get a staff for a start. But when the business expands, plan on getting more

It is good that you get a mentor and adviser to properly guided you in this business. This must be someone with years’ field experience in this business. He/she must have run this business over time and is ready to open up to you on what (or what not) to do.

9. Marketing and Advertising Strategies:

You may want to run Radio/TV jingles to get inform the larger society about your new business. This kind of business does not need much of a signpost to direct people.

Those who are interested in it know just how to locate your friends. A friend will tell a friend and the network grows like that naturally – that is if you treat your customers well. Else, the reverse becomes the case. A good customer relation equals increased influx flow of customers.

10. Recommended Productivity/Sustainability Tips

Productivity here lies in the level of innovation you introduce into the business. Bring in what others are not doing but which is much demanded by your clients. Listen to customers’ complaints and recommendations and work towards improving your business every day.

Read Also: 6 Steps to Start Food Canteen Business in Nigeria

Summary and Conclusion

Bar lounge business is indeed profitable. With about N800,000 you can start this business and watch it grow. Now, go up and preview this article again. If there is something you still need clarification on, kindly send me your questions in the comments box.

Thank you. Get other hot business tips like this here

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Lounge Business Plan Template

Written by Dave Lavinsky

Lounge Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their lounge companies. 

If you’re unfamiliar with creating a lounge business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a lounge business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Lounge Business Plan?

A business plan provides a snapshot of your lounge business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Lounge

If you’re looking to start a lounge business or grow your existing lounge company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your lounge business to improve your chances of success. Your lounge business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Lounge Businesses

With regards to funding, the main sources of funding for a lounge business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan (hand it to them in person or email to them as a PDF file) and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for lounge companies.

Finish Your Business Plan Today!

How to write a business plan for a lounge business.

If you want to start a lounge business or expand your current one, you need a business plan. The guide and sample below details the necessary information for how to write each essential component of your lounge business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of lounge business you are running and the status. For example, are you a startup, do you have a lounge business that you would like to grow, or are you operating a chain of lounge businesses?

Next, provide an overview of each of the subsequent sections of your plan. 

• Give a brief overv iew of the lounge industry. 
• Discuss the type of lounge business you are operating. 
• Detail your direct competitors. Give an overview of your target customers. 
• Provide a snapshot of your marketing strategy. Identify the key members of your team. 
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of lounge business you are operating.

For example, you m ight specialize in one of the following types of lounge businesses:

• Party lounge business : Any party can take on exotic or compelling variations when a special lounge is created by a party lounge business. This type of business caters to client preferences in any number of themed lounges. Design, setup, teardown and transport is typically included.
• Corporate lounge business: Attendees at trade shows and conferences can utilize a corporate lounge for resting, collaborating with partners or holding team meetings. The lounge is constructed as small spaces, with cube tables and other semi-private places for corporate personnel. Lounges are typically delivered to the venue, with setup and teardown provided. 
• Wedding lounge business: Wedding lounge settings can be as simple or elaborate as wedding party planners want them to be. Venues can be built to resemble Arabian tents with lanterns or grand ballrooms with Venetian chairs. This is a premium business with high-end offerings for elaborate wedding receptions and parties. Services include delivery, setup, teardown and return transport. 
• Pop-up lounge business: Fun, vibrant temporary lounges can be set up easily for corporate meetings or trade show events. These are designed to hold several small spaces, seating 2 to 4 people, with privacy for quiet conversations. Fabric curtains or tents may be used to add privacy. All services are included for this type of lounge business.

In addition to explaining the type of lounge business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of corporate clients served, the number of wedding receptions held, reaching X number of customers in pop-up lounge services, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the lounge industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the lounge industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your lounge business plan:

• How big is the lounge industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your lounge business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your lounge business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, couples, wedding planners, corporate event planners, community planners. 

As you can imagine, the customer segment(s) you choose will have a great impact on the type of lounge business you operate. Clearly, individuals would respond to different marketing promotions than corporate event planners, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers. Ideally you can speak with a sample of your target customers before writing your plan to better understand their needs.

Finish Your Lounge Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are othe r lounge businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes event halls, hotel ballrooms, trade show meeting rooms and outdoor picnic areas. You need to mention direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of lounge business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide appetizers and beverages within your lounges?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a lounge business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f lounge company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide indoor garden lounges, pop up breweries, or corporate gourmet coffee lounges?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your lounge company. Document where your company is situated and mention how the site will impact your success. For example, is your lounge business located in a busy retail district, a business district, or a standalone office? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your lounge marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to event planners, wedding planners, community and corporate planners 
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your lounge business, including answering calls, planning lounge themes and services, billing customers and maintaining furnishings, etc. 

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to build your Xth lounge, or when you hope to reach $X in revenue. It could also be when you expect to expand your lounge business to a new city.

Management Team

To demonstrate your lounge business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing lounge businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a lounge business or successfully running a small themed party business.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you see 20 customers per day in your lounge, and/or offer package pricing for large lounges ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your lounge business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a lounge business:

• Cost of equipment, furnishings and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of secured contracts for the next 6 months.

Writing a business plan for your lounge business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the lounge industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful lounge business.

Lounge Business Plan FAQs

What is the easiest way to complete my lounge business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your lounge business plan.

How Do You Start a Lounge Business?

Starting a lounge business is easy with these 14 steps:

• Choose the Name for Your Lounge Business
• Create Your Lounge Business Plan
• Choose the Legal Structure for Your Lounge Business
• Secure Startup Funding for Your Lounge Business (If Needed)
• Secure a Location for Your Business
• Register Your Lounge Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Lounge Business
• Buy or Lease the Right Lounge Business Equipment
• Develop Your Lounge Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Lounge Business
• Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

Don’t you wish there was a faster, easier way to finish your Lounge business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan writers can create your business plan for you.

Other Helpful Business Plan Articles & Templates

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One of the most profitable ventures in Nigeria is the lounge or bar business, often referred to as a beer parlour business. This business thrives because Nigerians enjoy socializing and relaxing with drinks and food after a long day’s work or during weekends. While many Nigerians consume alcoholic beverages, there’s also a substantial demand for non-alcoholic options like juice, Chapman, and soft drinks. Additionally, popular dishes like pepper soup, roasted fish, asun, and suya are in high demand at bars across the country.

In Nigeria, the bar business can be highly lucrative if certain key elements are carefully managed. These elements include location, customer attraction, customer service, and inventory management. In this article, we will explore the nuances of starting and running a successful bar business in Nigeria, examining factors such as capital requirements, necessary equipment, types of drinks to sell, and effective strategies for attracting and retaining customers.

Is Bar Business Profitable?

Table of Contents

The bar business in Nigeria is undeniably profitable, provided you can attract and retain customers and source your drinks at favorable prices. Whether you’re offering beer, palm wine, cocktails, alcoholic beverages, or non-alcoholic drinks, the key to profitability lies in procuring your products at competitive prices and selling them at a margin that ensures significant profit. For instance, buying a beer for N179 and selling it for N250 can yield a substantial profit margin.

Furthermore, the profitability of the bar business extends beyond drinks. Many successful bar owners diversify their income streams by offering additional services such as food sales, operating relaxation centers, and establishing football viewing centers.

Capital Needed to Start Bar Business

The capital required to start a bar or lounge business in Nigeria varies depending on the location. In rural or low-income areas, you can start a bar with as little as N500,000. However, if you plan to set up your business in an urban area, the initial investment may reach up to N2,000,000 or more. While it’s possible to secure financing from external sources, starting with your available capital and gradually expanding as the business grows is often a prudent approach.

Equipment Needed for Bar Business

To operate a bar business successfully, you’ll need various equipment and supplies. These include:

• Refrigerators : Essential for keeping drinks cold and refreshing.
• Wine Shelves : To display and store wine and spirits attractively.
• Television : Often used for entertainment, showing sports events, or hosting live events.
• Generator : A reliable power source to ensure uninterrupted operation.
• Chairs and Tables : Comfortable seating arrangements for customers.
• Cooker : Necessary for preparing food items like pepper soup and suya.
• Wine and Beer Cups : For serving alcoholic beverages.
• Trays, Plates, and Spoons : Utensils for serving food and drinks.

Setting up the electrical equipment may require the services of an electrician, and arranging the furniture may necessitate a carpenter’s expertise.

Types of Drinks Sold in Lounge Business

The success of a bar business largely depends on the variety of drinks offered to customers. Here are some of the most popular types of drinks sold in Nigerian bars:

• Beer : A staple alcoholic beverage, often in high demand.
• Soft Drinks : Non-alcoholic options such as soda and fruit juices.
• Wine : Both red and other types of wine cater to diverse tastes.
• Liquor : A wide range of spirits and liquors are popular choices.
• Cocktails : Creative and well-mixed cocktail drinks attract a specific clientele.
• Bottled Water : Essential for those who prefer non-alcoholic beverages.
• Energy Drinks : Gaining popularity for their refreshing and invigorating qualities.

How to Start Beer Parlour Business in Nigeria

Now, let’s delve into the steps to start and run a profitable bar business in Nigeria:

• Get the Required Capital : Securing adequate capital is the first step in establishing a successful bar business. Capital is essential not only for renting a suitable space but also for purchasing furniture, lighting, kitchen equipment, and stocking drinks. The more substantial your initial investment, the greater the potential for profit.
• Rent a Shop or Space : You can choose to either rent a shop or a space for your bar business. Shops offer visibility along major roads, while spaces can accommodate a larger number of customers. Regardless of your choice, select a location with high foot traffic, ensuring that potential customers can easily find your establishment.
• Set Up Your Bar Business : Once you have secured your space, it’s time to set up your bar. Consider the layout carefully, determining where the wine counter, kitchen, storage, refrigerators, generator, and customer seating will be located. For security reasons, restrict access to the kitchen and storage areas to your staff only.
• Buy Your Drinks Wholesale : After setting up the physical aspects of your bar, proceed to purchase drinks in bulk. Buying assorted drinks from wholesalers allows you to satisfy a wide range of customer preferences. Purchasing drinks at wholesale prices ensures higher profit margins. Proper storage of all alcoholic and non-alcoholic beverages is crucial for inventory management.
• Start Selling Drinks : As your bar business operates during evening hours, utilize the daytime to prepare for the evening rush. Store drinks in refrigerators, and procure food ingredients such as fish, goat head, pepper soup ingredients, and more. Freshness and variety in your food offerings can significantly enhance customer satisfaction. Consider keeping catfish alive for customers who prefer selecting their fish.
• Employ Helping Hands : Managing a bar can be overwhelming, especially when dealing with a large number of customers. To ease the workload, consider hiring staff to assist in running the business. If budget constraints prevent hiring employees, you can enlist the help of family members and compensate them with tips.
• Maintain Cleanliness : Hygiene is of utmost importance in the bar business. Neglecting cleanliness can lead to unpleasant odors and health violations, potentially resulting in the closure of your business. Regular cleaning, both before and after business hours, is essential to ensure a clean and inviting atmosphere for patrons.
• Manage Bar Expenses : Effective expense management is crucial for sustaining profitability. Consider running your bar solely on a generator during business hours to reduce electricity costs. This cost-saving measure can significantly impact your overall expenses and bottom line.

A. Provide Excellent Customer Service : Exceptional customer service is a rarity in many bars. By offering top-notch service, especially to first-time visitors, you can create a positive impression that encourages repeat business.

B. Ensure Security : Safety is paramount. Invest in security measures both inside and around your bar to reassure customers that their well-being is a priority. A secure environment encourages regular patronage.

In conclusion, the bar business in Nigeria is undeniably lucrative, but its success hinges on careful planning, efficient operation, and excellent customer service. Starting small with your available capital and gradually expanding the business can be a prudent approach. By adhering to the principles outlined in this article, you can establish and maintain a profitable lounge or bar business that caters to the social and recreational needs of Nigerians.

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Drinking Bar and Relaxation Spot Business Plan Financials, Model and Financial Projections Excel Template

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Brief Overview of the Drinking Bar and Relaxation Spot Business in Nigeria

Nigerians drink beer a great deal. Lots of Nigerian men enjoy unwinding after work, at a beer parlor to gist with their male buddies. A drinking bar and relaxation spot business is a really lucrative business in Nigeria. If you begin this business, you will certainly make huge sales daily. There is a significant increase in the intake of alcohol in spite of the so called financial hardship in the country and the increasing religious beliefs that is against the intake of anything that contains alcohol like beer, wine, alcoholic beverages, and so on. Every part of the country consumes alcohol, without regards to tribe, ethnic beliefs or background and religious stand; this implies that the producers of alcoholic beverages make nationwide sales and current data shows a consistent increase in the sale of these drinks.

Potentials of Drinking Bar and Relaxation Spot Business in Nigeria

You can sell 1 bottle of Stout/Star beer for N250 at your beer drinking bar and relaxation spot whereas the wholesale cost is N200 per bottle. For each bottle of beer, you sell, you can make over N50 profit. If you sell 500 bottles in a day, you can make N50 x 500 containers = N25, 000 in profits. In a beer drinking bar and relaxation spot, you need to sell other meals such pepper soup and snacks as well as cigarettes. This increases your revenue margins every day. A drinking bar and relaxation spot business in Nigeria is very easy to start.

Steps to Setting up a Drinking Bar and Relaxation Spot Business in Nigeria

Business Plan

A business plan is essential for a drinking bar and relaxation spot business in Nigeria. A business plan is a written document that explains thoroughly how a business, generally a brand-new one is most likely to accomplish its objectives. Understand that a business plan sets out a written plan from a marketing, financial and functional perspective. A business plan is a written summary of your business's future. A business plan is a file that explains what you plan to do and how you plan to do it. Create out a business plan, for each stage in establishing operating a drinking bar and relaxation spot. This will help you prevent any type of reckless mistake, which will make you lose money.

To guarantee success in a drinking bar and relaxation spot business in Nigeria, you need to choose an excellent location. If you choose a place where people are not frequent, you will have no customers. Ensure the place you select is secure, comfortable and easily accessible for your customers. 

Register your Business

Ensure you register your drinking bar and relaxation business with the Corporate Affairs Commission. This is an important step in establishing any business in Nigeria. The entire procedure for registering a business name usually takes 1-2 weeks, depending on the workload of the CAC and various other factors.

Capital refers to the funds that businesses can use to run their operations like cash, machinery, tools and various other resources. All businesses should have capital in order to buy assets and preserve their operations. You need money to set up a drinking bar and relaxation business in Nigeria. You can get funds from financial institution like banks which will serve as loan, you can also get sponsor or grants from families, friends and loved ones. 

Get a Refrigerator

You have to get a good fridge. You can get more refrigerators as your drinking bar and relaxation spot business grows. When your business becomes more established, you will be getting free branded refrigerators from beer companies as promotional products. These drinking bar and relaxation spot firms will want you to use the refrigerators for their products.

Buy Chairs and Tables

You need to get solid plastic chairs and tables. Ensure you get the original chairs and tables from good brands so as not to cause embarrassment and injury for your customers. Chairs and tables of top quality are quite costly however are much far better, much more secure and cost effective. Acquire as several chairs and tables as you need.

You require cups to serve drinks. Get great glass cups that the customers will enjoy using. Constantly maintain your cups in good shape by frequently cleaning them. Get other things you believe you may need in your beer drinking bar and relaxation spot business. 

Employ Staff

Staff describes all individuals employed by a specific business. You cannot run a drinking bar and relaxation spot business in Nigeria all on your own, you have to employ people to help you. You need personnel that will buy drinks, serve clients and collect payments from clients. And you likewise require cleaners that will help you maintain the beer shop is tidy and in good shape. Employ sales girls/boys to work at your drinking bar and relaxation spot.

Get a Generator

You have to get a generator for your drinking bar and relaxation spot in Nigeria to grow. Nigeria is a nation plagued with poor and unstable power supply. A generator assists maintain your drinks cold at all times, and your drinking bar and relaxation spot well ventilated.

Find Trusted Suppliers

Find trusted suppliers that you can create a business collaboration with. These suppliers will supply drinks anytime you require it, and as frequently as possible. Buy various brands of drinks, particularly the popular ones like Gulder, Star, Stout (Big and Small), and Heineken as well soft drinks, wines and juices.

Overview and Features of the Excel Template

The excel template comes with a powerful presentation and a thorough financial analysis and model for succeeding in this business venture. The template will enhance your chances of getting grants, attract investors and bank loans.

Inside this template, you will get:

• 3 years Income Statement.
• 3 Years Financial Position
• Cash flow Statements
• Trial Balance and Account Charts.
• Automated Macros to make the template faster, user friendly and accurate with little or no manual input.
• 24/7 Support from our team of financial experts and analysts.

Ms Excel Template

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How To Write A Business Plan In Nigeria (Free Samples And Templates)

This post concludes is the last of the series on “How to write a business plan” . The major challenge when it comes to writing a business plan is knowing where to start from. This most business owners and entrepreneurs don’t always get right. Looking through existing business plan templates gives a clear picture of what your business plan should look like.

This post contains a long list of free sample business plan templates that will give you the easy start you really need to write your own business plan.

1. Catering Business Plan

If you love to cook and are thinking about starting a business, combine the two and start a small catering business. But how do you start a small catering business? It’s by having a great business plan detailing every aspect of the business before you get started.

2. Event Planning Business Plan

Starting a catering business in Nigeria is a lucrative business with very good returns, with thousands of events and parties happening every weekend across the country. Event planning business requires a combination of education if necessary, an experience and excellent networking.

Also Read: How to Write a Business Proposal for Clients in Nigeria.

3. Hair & Beauty Salon Business Plan

Salon Business is one of the best and lucrative business in Nigeria right now because it does not cost much and requires little capital to start. Either a barbing salon or beauty salon for women pay a lot because it requires no college degree to start one but skill.

4. Day Care & Child Care Business Plan

Many Nigerian mothers are working at paid jobs or running their own small businesses which consume most of their time. As a result of this trend, there is a growing opportunity for convenience services like child and day care center businesses.

5. Driving School Business Plan

Are you an expert driver? Can you successfully teach others how to drive? If yes, you may be qualified to start a car driving school. There is a great opportunity in this business because most Nigerian are looking forward to owning their own cars. School leavers are also eager to learn how to drive.

6. Agriculture Farm Business Plan

Nigeria is blessed with a favorable soil and climatic condition that can accommodate crops such as onion, carrot, cocoa yam, pear, potatoes, okra, vegetables, beans and so much more. Starting an agriculture farm business is a profitable business opportunity with so much market to serve.

7. Feed and Farm Supply Business Plan

The feed farm production industry has been largely promoted as one of the most profitable agribusinesses to venture into. Africa, especially Nigeria, has a major impact on the worldwide production and distribution of livestock feed.

Also Read:  [PART 1] How to write a business plan – Tips when writing your business plan.

8. Fitness Gym Business Plan

Health they say is wealth; the need for health is the need of all both young and old, both for the rich and the poor alike. Would you like to invest in the fitness business, or are you thinking of a business to invest in? You should consider this business option.

9.Pharmacy Business Plan

Pharmacy or drug store business, whether we like or not, has become an integral part of the Nigerian economy today. In a nutshell, drugstores are described as retail establishments that market drugs, be it prescription-based, proprietary, or nonprescription medicine.

10. Fast Food Restaurant Business Plan

The fast-food business in Nigeria is a very profitable business. Food is something we cannot do without even if it’s once a day. The growing population of Nigeria with over 180 million people is also a high contributing factor to the profitability of fast food business in Nigeria. Amidst the current global crisis, one line of business in Nigeria that continues to promise greater returns on investment is the fast food business.

11. Bakery Business Plan

The consumption of bread and other bakery products such as biscuits, chin-chin, gala and meat pie among others, has created a huge market for the wheat flour industry. This sector has provided a lot of opportunities while more opportunities are still open for interested investors that are willing to invest some cash.

12. Internet Cafe Business Plan

The demand for internet cafe services in Nigeria is high especially in business enabled environments like tertiary institutions, offices and in different work areas. This business is one of the profitable medium scale businesses in Nigeria; the business can give a high-profit margin when managed properly.

13. Clothing Boutique Retail Business Plan

Starting your own clothing shop boutique is a good business idea in Nigeria because the fashion industry is one powerful sector that will always be vibrant in any economy because all over the world, people have a basic need for clothing. Beyond this need, fashion is also evolving on daily basis due to the huge and diverse interest in styles.

Also Read: [PART 2] How to write a business plan – Basic template contents & structure.

14. Automotive Car Repair Business Plan

Nigeria is and will always be a big market for cars, both used and new ones. Compared to other African countries, Nigeria alone spends up to $5 billion dollars every year importing vehicles (especially second-hand) from the USA, Canada, Europe, and Asia. Which makes the industry an area worthy of investing.

15. Car Wash Business Plan

The good aspect of this business is that it does not necessarily require a large amount of capital or funding especially when you intend to start. For those who have enough money to invest, this will be a good decision as with more money invested, the business can grow much better and faster leading to better and profitable returns.

Other business plan samples and templates include;

16. Used Cars Sales Business Plan.

17. Online Print Shop Business Plan .

18. E-commerce Retailer Business Plan .

19. Coffeehouse Business Plan.

20. Night Club Business Plan.

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Lounge Business Plan Template

Written by Dave Lavinsky

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

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.

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 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

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.

Customer Analysis

Demographic profile of target market.

A demographic profile of the Las Vegas area is as follows:

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

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.

Competitive Advantage

Lulu’s Lounge will be able to offer the following advantages over their competition:

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:

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.

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.

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

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

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, balance sheet, cash flow statement, 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. 

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.

How to start a Restaurant in Nigeria: The Legal Issues

Starting a restaurant in nigeria: the legal issues.

Restaurants in Nigeria are big business. In this article, we will discuss the legal considerations entrepreneurs should have when looking to start a restaurant in Nigeria. Unfortunately, we will not be looking at the operational and business viability aspects of starting a restaurant in Nigeria, as that is not our expertise, our expertise is the law, and that is what we will stick to.

Starting a restaurant in Nigeria has its own set of legal considerations. These include choosing the right business structure, obtaining the proper licenses and permits, paying the relevant fees and levies, dealing with health and safety, getting adequate insurance, dealing with employees etc.

Choosing the right Business Structure

In order to set up your restaurant business in Nigeria there are potentially 4 types of structures you could adopt. You could decide to register as sole proprietorship, a partnership, a limited liability partnership (in Lagos) or a limited liability company. For the purposes of this article, we will only be discussing 2 types – sole proprietorship (registered business name) and the limited liability company.

A registered business name provides you with a flexible business structure with very little formal restrictions placed on you as the business owner. However, the biggest legal risk is the fact that there is no separate legal personality between you the owner and the business. In other words, in the eyes of the law, you and the business are one and the same. This means that you will have unlimited personal liability for things which emanate from the business. This personal liability can be towards customers, competitors, lenders, employees, and even the government.

An illustration of this would be if a customer suffered from food poisoning after eating a meal at your restaurant. You as the owner could be sued by your customer, and because there is no separate legal personality, you would be sued in your name as well as the business, and any legal liability would be unlimited towards you as the owner. Therefore, something that happened in the business could easily bankrupt you the owner.

On the other hand, setting up a limited liability company is generally the preferred structure for doing business in Nigeria, as it gives you the founder, limited liability from the company. The company has a separate legal personality from the person/people who set it up. So, if we use the same food poisoning illustration, if it occurred, and you were sued, it would be the company that would be sued and not you personally.

Also, from the perspective of a restaurant business, it also has certain tax benefits, for instance when you buy new (expensive) kitchen equipment for your restaurant, it can be purchased in the company name and then classified as a cost of the business rather than a personal expense.

We therefore suggest that setting up a limited liability company is probably the best structure for a restaurant to decide to adopt.

Licenses and Permits

In order to commence your restaurant business in Nigeria, you will need to obtain a variety of licenses and permits. In some cases, the licences you will need to obtain will be at the Local Government office, in other cases it might be at an agency of the State Government. Ensuring that you have the appropriate licences and permits is critical to your setting up of your restaurant business in Nigeria. The types of licences and permits vary by location, and so it is important that you seek out professional legal advice in the restaurant set up phase. Also, if for instance your restaurant will sell alcoholic beverages, there is a certain licence that will be required. If your business will be open at night time, or potentially past midnight, there is a specific permit that will need to be obtained. Getting the right legal support is therefore critical to starting your restaurant business on the right footing from a licence and permit perspective.

Health and Safety

The restaurant business is a very delicate and sensitive business, this is because restaurants are all about people eating food, therefore they are subject to significant regulations regarding food health and safety. Apart from the obvious permit which will be required for the preparation and handling of food, you should expect that your restaurant will be subject to regular monitoring and inspections by the local government or State government to ensure that you are keeping up to the relevant health and safety standards. Inspections may cover not only the food itself, raw and prepared, but also refrigeration systems, cooking equipment, and waste disposal, among other areas.

Apart from the health and safety of the food, another issue is the physical health and safety of the customers while in your restaurant. If your restaurant will be serving large numbers of people you may have crowd control issues and, therefore, need to obtain a license or permit from a fire or police department. Similarly, you probably will also need a permit or license relating to adequacy of exits from the restaurant and related emergency issues.

In running a restaurant in Nigeria, there are some restaurant-specific risks which exist like the customers or employees slipping and falling on the premises, someone getting hurt from hot liquid or broken glass, or someone becoming seriously ill from the food itself. These are on top of more generic business risks such as fire, theft, or other sources of property damage or personal injury.

It is therefore important that as someone interested in the restaurant business in Nigeria you sit down with your lawyer and an insurance agent to assess what the risks are, and try to protect your business from those risks by taking out adequate insurance policies. This is in addition to the compulsory insurance which already exists and which business owners in Nigeria must take out, for example – Occupiers Liability Insurance – This insurance is compulsory for all “public buildings” i.e. any building that is not 100% used by the owner for residential purposes. Occupiers Liability Insurance provides compensation in events of bodily injury, death and property damage in case of building collapse, fire, earthquakes, storm or flood.

Franchising

Franchising is a business model where the owners, or “franchisors”, sell the rights to their business logo, name, and model to third party retail outlets, owned by independent, third party operators, called “franchisees”. Franchises are an extremely common way of doing business, examples of well-known franchise business models include McDonalds, Subway, KFC, Dominos etc.

In the restaurant business, if you sign up to a franchising business model, you as the franchisee, would have to first pay an initial fee for the rights to the business, training, and the equipment required by that franchise. Once the restaurant begins operating, you will generally pay the franchisor an ongoing royalty payment, either on a monthly, quarterly, or annual basis. This payment is usually calculated as a percentage of the franchise operation’s gross sales. After the contract has been signed, you will open a replica of the franchise restaurant, under the direction of the franchisor. You will not have as much control over the restaurant as you would have over their own business model, but you may benefit from investing in an already-established, name brand.

If this is the business model you intend to adopt, then it is imperative that you hire the services of a lawyer to not only review the Franchise Agreement, but also to conduct some due diligence on the franchisor to ensure there are no inherent risks that the franchisor might have which could impact on your restaurant e.g. existing litigation.

Intellectual Property

Discussing intellectual property in an article about starting a restaurant business in Nigeria might seem strange, but it is a very valid legal consideration to have. Today branding is key to the creation and survival of a thriving business, and therefore it is important that you protect your brand. The best way to protect your brand is by protecting the trademark.

When choosing your brand, you need to make sure it is available and does not infringe on anyone’s existing trademark, it is always advisable to get a lawyer to conduct a trademark search. Failing to research a brand before adopting it can lead to denial of registration by the Trademark registry or, worse, a cease and desist letter from another brand owner. Therefore, spending the time, money, and effort up front to determine whether a brand is available will help avoid the very high costs of a dispute or litigation.

Trademarks are also a potentially valuable asset which could appreciate in value over time, the more your business reputation and customer base grows, the more valuable your brand will be and  can lead the way for expansion. If for instance you have big plans for your restaurant and you want to be able to franchise it at some point in the future, you definitely need to ensure that the brand is protected. Registering the trademark ensures that you are in the right legal position to be able to franchise your restaurant.

Apart from your brand, you could also consider trademarking some of your foods, for example McDonalds has registered trademarks on a number of their foods e.g. the ‘Big Mac’ burger and the ‘Chicken McNuggets’.

Finally, we come to what people love the most…tax!

There are number of compulsory taxes for all businesses in Nigeria, for example Companies Income Tax, Education Tax, Value Added Tax, etc. However, in certain States in Nigeria there are additional taxes which have been imposed on restaurants. For example in Lagos, the Lagos State Government imposes a sales/consumption tax of 5% on services provided in restaurants within the State.

Before setting up a restaurant therefore it is important that you get a lawyer who is familiar with the tax implications on your business and can ensure that you do not fall foul of the relevant laws.

Thank you for reading this post, we hope you have found it useful. If you have please share with your network using one of the share buttons below.

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How To Start A Restaurant Business In Nigeria 2023 (Full Guide)

• Post author: Edeh Samuel Chukwuemeka ACMC
• Post published: July 11, 2023
• Post category: Financial Tips

How To Start a Restaurant Business in Nigeria: A restaurant is a place where you pay for your food and eat it. A waiter or waitress will often bring your food to your table. Restaurants have become one of Nigeria’s fastest-growing businesses, with over 60% of the population eating outside their homes on a regular basis.

The restaurant industry is mostly for individuals who are skilled in the kitchen and wish to pursue a career in it. So, if you’re among these people and live in Nigeria, consider yourself extremely fortunate. The information about how to start a restaurant company is mentioned below.

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Table of Contents

How To Start Local Restaurant Business In Nigeria

1. Examine the restaurant market: The first step in launching a restaurant company is to research the local restaurant industry. When it comes to starting a restaurant, this is crucial. It is usual for market research for the restaurant sector to take many months.

This will assist you in avoiding costly mistakes. While the business may appear simple and straightforward to begin, there are regulations to follow if you want to be successful. And you learn these guidelines by researching the market for this type of business.

2. Register your business: Registering your restaurant is the next step. You should register your restaurant name to help you build your brand and differentiate yourself from the competition.

Business name registration is handled by Nigeria’s corporate affairs commission, and it may be done online. Make the mistake of not registering your restaurant before opening it. Someone else may register it and claim the brand name you’ve worked so hard to build.

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3. Make an all-encompassing approach: The business plan you write will guide the growth of your restaurant. Regardless of how much effort you’ve put into your idea or how many reliable individuals have assured you of your company’s success, you must produce a business plan. Your strategy will act as a road map for your firm as it grows.

4. Determine who your target clients are: You need customers who will eat at your restaurant. What are their occupations, ages, and average earnings? When launching a restaurant business, you must address these questions.

If you know your target clients and niche market well, your restaurant business will thrive. You can scan for them or make and distribute handbills to attract them.

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5. Look for an appropriate place: Another stage is to choose a suitable site for your restaurant. One of the finest locations for a restaurant company is in a heavily populated and easily accessible portion of town.

Of course, you should keep in mind that it is better to locate your restaurant near colleges, motorparks, and business complexes. These are regions where you may expect a large number of different types of individuals to visit your business.

6. Find out what the tax rate is in your area for your restaurant: Again, you must determine the restaurant tax rate in your area and determine whether you can afford it. In Nigeria, all firms must pay a variety of taxes, including corporate income tax, education tax, and value added tax. However, in several Nigerian states, restaurants have been subjected to extra levies.

The Lagos State government, for example, levies a 5% sales/consumption tax on services performed in restaurants inside the state. Before you start a fire, you should consult with a lawyer who is aware with the tax consequences of your business and can assure that you are not breaking any laws.

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7. Obtain the required restaurant sales permit and license: In order to start a restaurant in Nigeria, you will need to secure a number of licenses and permissions. In certain circumstances, you will need to seek licenses from a local government office, while in others, you will need to obtain them from a state government agency.

It is vital to ensure that you have the necessary licenses and permissions before starting your restaurant company in Nigeria. Because the sorts of licenses and permissions differ by area, it’s critical that you get legal assistance early on in your restaurant’s development.

Also, if he stands and you still want to offer alcoholic beverages, you’ll need a specific license. If your business will be operating late at night or maybe past midnight, you will need to get a special permission. Getting the correct legal help is therefore crucial for getting your restaurant off to a good start in terms of licenses and permits.

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8. Raise funds for your startup: After doing your research and making your decision, you should have a good estimate of how much it will cost to open a restaurant. Capital is one of the most important criteria for beginning a restaurant. As a result, you’ll need to generate funds for your company.

Your capital letter denotes the size of your company: small, medium, or big. Because growth is a constant and steady process, it’s fine to start modest and expand later as you gain expertise and financial rewards.

9. Create a menu plan: Any restaurant’s menu is the most crucial contact point. Daily promotions and a prix-fixe menu should be available in your establishment. Prices for each meal should be included in your menu list. You may come up with your menu pricing list by looking at what other restaurants in your area charge for a plate of food they provide.

As a newcomer to the industry, the price for a plate of new offer may be slightly cheaper than what others charge for the identical plate of dinner in order to attract new customers. To build credibility and give your restaurant an advantage over others, as a chef and lover of culinary art, you must have your own distinctive recipes and a flexible menu at a fair price.

Ask yourself why consumers should keep eating at your restaurant. If you can honestly answer this question, you’re on your way to creating a successful restaurant. Make plans to receive food and specialty condiments at regular and cheap costs by identifying and connecting with wholesale suppliers. This alleviates the burden of locating and purchasing food items that are seasonal, limited, or in short availability on the market.

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10. Invest in the necessary restaurant equipment: Cooking utensils, tables, hand and plate washing supplies, desks and chairs, internet cables, inverter, cooling system, fans, generating plants, TV set, dstv/local antenna, audio music player, and other entertainment equipment are all required in any restaurant.

11. Decorate your restaurant: You must also furnish the restaurant. There are various possibilities available, but it all comes down to personal preference. To add to the amazing atmosphere of your restaurant, Full-stop used first flowers in a sturdy and contemporary hand-sculpted brass work overhead.

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12. Hire competent cooks and wait staff: Employee knowledge Waiters and employees who are passionate about and appreciate the importance of high customer satisfaction in the restaurant sector will decide to a significant part your ability to maintain and attract new customers. Your chefs’ watchwords should be meticulous attention to detail and the utilization of the freshest seasonal foods and high-quality goods.

13. Make a management team and structure it: Make a management team and organize it. You require managers to handle the firm for you so that you may devote your time to other activities. Organize waiters and waitresses to service your guests, as well as a financial accountant to provide correct financial information.

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14. Standardize health and safety procedures: Because restaurants are all about people consuming food, the restaurant industry is extremely sensitive. We should anticipate that the restaurant will be monitored and inspected on a regular basis by the local or state government to verify that you are following all applicable health and safety regulations.

Inspections may include not just raw and peppered food, but also refrigeration systems, cooking equipment, and garbage cans.

15. Promote your company : In this business, this is one of your main priorities. This is because it makes very little difference how terrific a chef you are or how fantastic your offerings are if no one knows about your eatery. You must market your restaurant regardless of the type.  For outstanding fast service restaurants, use social media channels.

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Top 3 Facts About Restaurant Business In Nigeria

1. Competition: Just like every other business, running restaurant business in Nigeria is highly competitive. As stated earlier, restaurant business is a life saving business in Nigeria. This is in the sense that food is a necessity. This fact is known to everyone. On the same hand, the lucrative nature of restaurant business is equally known to all. People will always consider restaurant business when evaluating their choice of venture.

In Nigeria, it is usual for every street to have more than one restaurant. This is where the competition begins. So, the demand is high on the side of customers, and they will always stick with the vendor that satisfies their need. First impression in this instance is of utmost necessity. Embellishing your services with something unique and employing other strategies to appeal to the customer’s appetite are most recommended.

2. Need for permit: In some areas in Nigeria, running a restaurant business requires getting an authorization from a designated authority, usually from the community delegates or any other authority designated for that purpose. A deductible reason for this is that selling of food has something to do with public health.

Authorities that are in charge of public health and public nuisance in the target community or state may want to set a standard for the operation of the restaurant business in order to ensure public safety. Other evaluations and standard permit may be required, such as fire safety and other hazards.

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3. Restaurant business is lucrative: Undoubtedly, running a restaurant is lucrative. Its lucrative nature is at its peak when the business is well invested in and adequately managed. So, there is need to maintain good customer relationship and explore viable business strategies in other to be unique in this line of business.

Profits are not automatically made by the mere fact of opening a restaurant, and it may not come soon at the very inception of the business. Profits are rather derived from the strategies employed in managing the business. And the most important part of managing the business is employing those strategies that will guarantee sustenance of the business and a long-term profit.

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In conclusion, the processes to start a restaurant company in Nigeria are as follows. Consider how lucrative it is and how much it will cost to get started. You can study business at the entry level and work your way up to become a large-scale company enterprise. You will undoubtedly succeed if you follow the steps to starting a business.

Edeh Samuel Chukwuemeka, ACMC, is a lawyer and a certified mediator/conciliator in Nigeria. He is also a developer with knowledge in various programming languages. Samuel is determined to leverage his skills in technology, SEO, and legal practice to revolutionize the legal profession worldwide by creating web and mobile applications that simplify legal research. Sam is also passionate about educating and providing valuable information to people.

Starting a game center business in Nigeria can be a lucrative and rewarding venture, but it requires careful planning and execution.

In this article, we will go in-depth on the steps you need to take to start a Game center business in Nigeria, including market research, choosing a location, purchasing equipment, setting up your space, and promoting your business. Following these steps, you can build a thriving game center that caters to the growing demand for video gaming in Nigeria.

Steps needed on How to Start a Gaming Center Business in Nigeria

Table of Contents

Step 1: Research the market and create a business plan

Before you start your game center business in Nigeria, it is important to do some market research to determine the feasibility of your venture. Consider the following questions:

• Is there a demand for a game center in your area? You can check the demand for a game center by looking at the number of existing game centers in your area and their popularity, as well as the demographics of your potential customers.
• Who is your target market? Your target market will likely be children, teens, and young adults who are interested in video games. You may also want to consider offering board games and other non-electronic games to attract a wider range of customers.
• What kind of games will you offer? Consider the types of games that are popular in Nigeria, as well as the latest and most popular games on the market. You may want to offer a mix of console games, PC games, and board games to appeal to a diverse group of customers.
• How will you differentiate your game center business in Nigeria from competitors? To stand out from the competition, you will need to offer something unique or better than what is already available. This could be a wider selection of games, a more comfortable and welcoming atmosphere, or lower prices.

Once you have a clear understanding of the market, you can create a game center business plan in Nigeria that outlines your goals, target market, marketing strategy, and financial projections. A well-written business plan will help you secure funding and stay on track as you launch and grow your business.

Step 2: Choose a location

The location of your game center business in Nigeria is one of the most important factors in determining its success. You will want to choose a location that is easily accessible, has ample parking, and is in a high-traffic area. Consider factors such as proximity to schools, residential areas, and other businesses that may attract potential customers.

You should also consider the size of your location and whether it is suitable for the number of gaming stations you plan to offer. A larger location will allow you to accommodate more customers and offer a wider selection of games, but it will also require a larger investment in rent and utilities.

Step 3: Purchase equipment and supplies

Once you have secured a location, it’s time to start purchasing equipment and supplies. You will need to purchase gaming systems, such as consoles and PCs, as well as monitors, keyboards, and other peripherals. Make sure to research the latest and most popular games to ensure that you have a diverse selection to offer your customers.

In addition to gaming equipment, you will also need to purchase other supplies such as seating, tables, and storage shelves. You may also want to consider offering snacks and beverages for sale, in which case you will need to purchase a refrigerator, microwave, and other food service equipment.

You can purchase equipment from this website called Jiji

Step 4: Set up your space

After you have purchased your equipment and supplies, it’s time to set up your space. Consider the layout of your game center business in Nigeria and how you want to arrange the various gaming stations. Make sure to create a comfortable and inviting atmosphere with comfortable seating, good lighting, and a clean and organized space.

You should also consider the overall design and aesthetic of your game center. A well-designed space can create a more enjoyable experience for your customers and help set your game center apart from competitors. Consider the theme of your game center and how you can incorporate it into the design and decor.

In addition to the gaming areas, you will also need to set up a reception area where customers can check in and pay for their gaming sessions. You will also need to set up a storage area for your equipment and supplies, as well as a break room for your employees.

Step 5: Promote your Game center business in Nigeria

Once your game center business in Nigeria is set up and ready to go, it’s time to start promoting your business. There are many ways to advertise your game center, including social media, online directories, local advertising, and word of mouth. Consider offering promotions or discounts to attract new customers and encourage repeat business. You may also want to consider hosting events or tournaments to draw in a larger crowd.

In addition to traditional advertising methods, you can also use customer loyalty programs and email marketing to keep in touch with your customers and promote your business. Consider offering incentives for customers to refer their friends and family to your game center, as word of mouth can be a powerful marketing tool.

Step 6: Train and manage your employees

As your game center grows, you will likely need to hire employees to help run the business. It’s important to carefully select and train your employees to ensure that they provide excellent customer service and maintain the cleanliness and organization of the game center.

Consider implementing a training program for new employees to ensure that they have a thorough understanding of your policies and procedures. You may also want to consider using a customer relationship management (CRM) system to keep track of customer interactions and feedback(this is optional).

Step 7: Expand and evolve your business

As your game center becomes established, you may want to consider expanding your business by adding new games and equipment or opening additional locations. You should also be open to adapting to changes in the market and customer demand, such as the introduction of new gaming technologies or the popularity of new types of games.

By continuously improving and evolving your business, you can stay ahead of the competition and keep your customers coming back for more.

Starting a game center business in Nigeria can be a challenging but rewarding endeavor. By following these steps and being proactive in your marketing efforts, you can build a successful business that caters to the growing demand for video gaming. With careful planning and execution, you can create a game center that is both profitable and enjoyable for your customers.

Equipments needed to start a Game center business in Nigeria

You will require the following in order to launch a video game business:

• Gaming consoles: You will need to choose which gaming consoles to offer at your game center, such as PlayStation, Xbox, or Nintendo systems. You will need to purchase the consoles themselves, as well as any necessary controllers and accessories.
• Gaming PCs: If you want to offer PC gaming at your game center, you will need to invest in high-performance gaming PCs, as well as monitors, keyboards, and mice.
• Virtual reality equipment: If you want to offer virtual reality experiences at your game center, you will need to invest in VR headsets, controllers, and any necessary sensors and tracking equipment.
• Seating and furniture: You will need to provide comfortable and functional seating and furniture for your customers, such as gaming chairs and tables.
• Sound and lighting: To create the right atmosphere at your game center, you may need to invest in sound and lighting equipment, such as speakers and LED lights.
• Point-of-sale system: You will need a system to track and process payments from customers, such as a cash register or a point-of-sale software.
• Other equipment: Depending on the specific needs of your game center, you may need additional equipment, such as refrigerators for drinks and snacks, or security cameras for safety and security.

It’s important to carefully consider the type of game center you want to create and the needs of your target audience when deciding which equipment to invest in. You may also want to seek advice from other professionals in the industry or consult with a business advisor.Regenerate response

Is Game Center Business in Nigeria Profitable?

Yes, the game center business can be very profitable. The global video game market is expected to reach over $300 billion in revenue in 2021, and the industry has consistently been one of the fastest-growing markets in the world for the past decade.

Youths are coming up day afterday, and many of them are looking for hobbies or ways to pass the time or find joy.

A game center is open for more than 12 hours, so consider how many game sets could be played in that time. On a daily basis over 100 games sets are played per day on average at a gaming lounge that is situated in a good location, and they charge a minimum of Naira 50 – Naira 100 per set for 10minutes, You could average naira 5000 – naira 10,000 daily from this business.

Making 10,000 naira perday multiplies by 25 days in a month that’s Making 250k per month from the business. One thing about the business is that the operating cost is not much so could be making 70% profit from your 250k Revenue which is good money. Lastly, a Game center business in Nigeria can not survive without a business plan because of various external and internal factors that affect every Nigerian business, so get a well-detailed business plan from us, which contains all you’ll need for to successfully setup and run your game center business.

Good luck with your newfound business and Godsp

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Micah Erumaka

About Micah Erumaka

Micah Erumaka is the Founder of LiaonCEM solutions which owns NaijaCEO. He is an Internet Entrepreneur and a content creator. After the failure of his first company at age 18 he started NaijaCEO to help entrepreneurs with the information they need in operating a successful business in Africa

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• Entrepreneurship

HOW TO START A HOTEL BUSINESS IN NIGERIA

Do you wish to start a hotel business in Nigeria, but don’t know how? Worry no more, as you will get all the answers you seek today!

We will explain every step required in setting up a hotel in Nigeria right here in this article.

We’ve got years of experience helping hotels with pre-opening, Management, Restructuring and more

So, be rest assured every information you find here isn’t just theories but born out of expertise and experience.

In 2015, a report by Jovago.com listed Nigeria has having over 2218 hotels in major cities like Lagos, Abuja, Portharcourt, Ibadan and Calabar.

The hospitality industry is growing at a sporadic rate and a lot of new hotels are springing up daily.

Getting your hotel business up and thriving in this economic clime with the large number of competitors available will require you to deploy the use of some strategies.

 These strategies will also keep you as the leader of the pack; this article aims to expose some of these strategies.

There are different things that contribute to the successful running of a hotel business, you have to consider facility maintenance and direct operations; servers, housekeepers, porters, kitchen workers, bartenders, management, marketing and human resources etc, to run a successful hotel business every part of the hotel must run and function efficiently.

Different Classes Of Hotel Business

When starting a hotel business, it’s important you decide the class of hotel you want to build. It’s different from hotel ratings.

These classification takes several criterion. We have classifications based on locations, sizes, by service standard, ownership and affiliation.

These classification takes into account target market.

While small hotels do not target elite customers, it’s ideal market is budget customers.

READ: HOW TO START A PLUMBING SERVICE IN NIGERIA

The same way large hotels target elite customers with both semi and full luxury amenities.

 So, in building your hotel business, it must be based on the target market, and that is directly connected to your building budget as well.

Here is the general hotel business classification:

Generally, hotels are classified and built with this general classification in mind. Your dream hotel can fall into any of this hotel business class.

• Commercial Hotels
• Airport Hotels
• Suite Hotels
• Extended Stay Hotel
• Bed & Breakfast Hotel
• Residential Hotel
• Resort Hotel
• Casino Hotels
• Conference Hotels
• Convention Hotels

While Hotels that are classified on the basis of location includes:

• Airport Hotel
• Country Hotel
• City Center Hotel, etc.

Another classification are those by sizes, which includes:

• Small Hotel
• Medium Hotel
• Large Hotel
• Major Hotel

But this class of hotels have two separate classifications based on U.K types and typical class.

 The U.K. Class is also what often obtain here in Nigeria.

READ: HOW TO START A BAG MAKING BUSINESS IN NIGERIA

So, you can classify Nigerian hotels based on the U.K class and you will be right. But that’s not to mean that some Nigerian hotels are not in the typical class.

It’s just that Nigeria doesn’t have a standard class rating of its own.

For you to successfully set up a hotel business in Nigeria, here are the steps you must take:

Carry out a Feasibility Study

You need to conduct a feasibility study for you to better understand the business you are going into.

This means you have to research on the location and size of the intended hotel you have in mind.

Doing this helps in shaping the decisions you make at the end of the day. 

You also get to have the right business plan, since virtually everything, including needed funds, facilities, name and scope of business will be factored in.

Put simply, a feasibility study allows you to determine if the business will be beneficial or not.

 Carrying out a feasibility study can be hectic, it’s why there are companies in place who can get it done on your behalf; we are one of them.

Have a Business Plan

Now that you’ve done your research efficiently, coming up with a business plan will flow easily. A good business plan helps in attracting investors.

This is why you must have detailed and well-constructed strategies in place.

Your business plan must sell, it must speak for the business. Additionally, a business plan helps you in running your hotel properly.

Register the Business

The Corporate Affairs Commission of Nigeria is the body you have to go through to have your business registered.

 It is a major requirement for obtaining the certificate of incorporation which will be needed to obtain operating licenses for your hotel.

There are also other organizations you have to go through to obtain certain licenses and permits.

They include The Nigeria Hotel Association (NHA), Nigerian Tourism Development Corporation (NTDC), and the State Hotel Licensing Authority.

Source for Capital

You need funds to build a hotel. Assuming you don’t have enough to fund this hotel business of yours, then you will have to apply for loans from banks, grantors, or angel investors.

However, these things don’t just happen, an excellent business plan must be in place to convince anyone to give you such loans or attract investments.

Build Your Hotel

Ensure your hotel business is structured according to what it stands for. Every part of the building, from the outer layouts to what’s inside, should be well furnished and put together.

Thus, it’s essential you hire competent architects and builders for your hotel building project.

Note however that building goes beyond the physical structure. It also includes having a hotel management software and staff uniform.

While hotel management software will help in ensuring seamless operations, uniforms contribute greatly to branding.

Hire Competent Staffs

This is very integral if you wish to have a successful hotel business.

Having the right staff contributes to productivity.

 Each staff member efficiently doing their jobs is what determines the outcome of the business.

Thanks to the hospitality recruitment agency like “Anywork Naija”, you won’t have to go through the hassle of recruitment.

 Apart from recruiting, you can go further to get your staff trained. This can be effectively and efficiently handled by Jones Hospitality.

Design, Build And Furnish Your Hotel

Use only the best company to plan, design, build and furnish your hotel. A hotel is more than a fine building. So much goes into the building of a hotel.

 Firstly, the class of hotel business is a major criteria when designing a hotel.

A builder who doesn’t understand the different class of hotels won’t get it right.

And when you understand the class of hotel to build, it helps you come up with a feasible budget and save you cost from adding amenities that doesn’t belong with that classification.

Also, hotel furnishing is an important aspect of hospitality.

You want customers to satisfy their fantasy which includes luxury beyond what they have and experience at home.

Whether you want to build a 1-star or 5-star hotel, you need an experienced company to build your hotel.

Offer Satisfactory Services

Whatever your offer let it be satisfactory to your target customers. One of the key benefits of knowing your customers is to be able to provide them with the best services that exceeds their expectations.

That way, even your staff are trained to know what your customers want and how to satisfy them.

Sometimes, it could means being courteous, capable of resolving issues that arise promptly or even as simple as remembering the names and preferences of repeat guests and giving advice about what’s new and better for them.

Implement a Smart E-commerce Strategy

Most hotel rooms are sold online than through walk-in customers. A good hotel should be able to sell at least 60 percent of its room via online hotel booking portals.

Apart from hosting your own booking portals, you should also list your hotels with every popular hotel marketplace online.

You should take advantage of social media platforms to promote offers and sell more hotel rooms.

Your marketing strategy should be such that encourages the sales of more rooms.

Even if it includes using price point to lure online customers.

Structure a Smart Hotel Pricing Strategy

Sometimes, a little bit higher than normal price could bring you more customers than an average price or cheaper deals.

 Be smart and learn smart hotel pricing strategy. It will help you increase number of rooms you give per day.

However, you should learn to determine room rate based on your cost and market research. You may have relatively high cost than a competing hotel.

Selling lower than them may be costing you good revenue.

Price factors should include the following:

• Cost of Staffing
• Room category and amenities
• Average Time and length of stay
• Cost of Maintenance
• And your Competitors pricing

Make Flexible Decisions

Hotel customers are the most difficult set of customers to deal with.

 And that’s because they are rich or are willing to spend more for luxury and comfort. That means they are also loud and braggadocios.

They want everything, even beyond what they can afford.

Sometimes you need to make decisions that is not in the hotel manual, your hotel management needs to be flexible enough to decide on every issue to improve customer satisfactory report.

Also, you should know that a single bad customer review online can destroy your hotel business than a thousand good reviews can do.

 So, paying close attention to what customers may say about you should help you decide faster on every customer request.

Differentiate And Target Repeat Customers

Customers would remember their experience more than the ambience of your hotel.

Offer them better experience to help them choose your hotel against the competitors.

Rather than try to do too many things, focus on significant areas of hospitality and do it much better than hotels around you.

Also, you should create the kind of products that other hotels don’t have.

That way you win a significant numbers of repeat customers who would come to your hotel because you offer what’s not available elsewhere.

Focus on Quality Management

Providing quality services at any hotel is not just about the value customers derive from the products. Most times it’s often the way the values are being presented.

Having an inspired workforce is better than building the best looking hotel in town.

If your workforce is happy working in your hotel they would in turn express it in the way they serve those who come to the hotel.

Primary because they want to continue to work here and not because they are afraid to be sacked.

Focus on employees’ satisfaction as much as you want customers satisfied by the employees. Factor a good pay and free times for workers into your management style.

Don’t treat workers as slaves, because they will express slave mentality in their service delivery.

Plan For Strategic Marketing

Don’t be the kind of hotel people would discover by chance. Be popular in your market.

That’s the way to grow hotel business. If people don’t know your hotel exist, they wouldn’t recommend you to anyone.

Create marketing that encourages more new customers. The more customers you make, the better your long time success strategy. Also, discover programs and events that bring more people to your city and tap into them.

It might be churches, government or organizations. Partner with them and create special price package to lure them to use your hotel for their events.

 Do everything to be the hotel of choice by most event organizers in your city

Hotel business is location base. The first thing you must get right is your location, using your hotel classification and target customers as a yardstick to determine where to locate your hotel business.

And getting your hotel location right should not be a guess job.

Neither does it require a magic wand.

What you need is a professionally done feasibility study to determine the possible profitability of your hotel business in your chosen location.

And if the right location meets the target customers with the right hotel classification building, your hotel business will be an instance success.

Note the three key points: location, target customer base and the right hotel classification building.

These three things would require the best hotel consulting experts to handle it for you.

Don’t throw away your hard-earned money in ignorance and ‘over-sabi’ mentality.

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Nice write up .your contact please

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How to Start a Restaurant Business in Nigeria: Complete Guide 2024

• October 1, 2023

One of the most lucrative food business ideas in Nigeria is the restaurant business. This business is massively profitable and easy to start especially for those whose hobby is cooking.

The food restaurant business can be started by anyone regardless of location in Nigeria, and it can be started both on a small scale or a large scale depending on how you want to operate.

Starting a food restaurant business is not only great for those who are passionate about cooking, but also for entrepreneurs looking for a source of daily income . While it is easy to get started, you need to know all the steps required to make the business a success.

That is why we’ve come up with the post to show you exactly how to start a restaurant business in Nigeria. That’s not all, but you’ll also discover several different restaurant business ideas you can start, the cost of starting, profits to expect, and so on.

Are you ready for all that? Let’s go then!

Table of Contents

Starting a Restaurant Business in Nigeria

Restaurant business simply means setting up a hygienic place where you’ll be selling all kinds of food. This business is very popular in all parts of the country, as it is fast-moving.

That is because everybody needs food to survive. And an average Nigerian does eat outside in at least a restaurant on a daily basis, as that’s the fastest way to get their belly filled, especially for lunch. This makes the food restaurant business in Nigeria a good source of daily income.

Whether you’re a male or female, you can set up a restaurant anywhere in Nigeria and drive lots of sales. Although setting up a good-looking place for your restaurant is the most popular way people start this business, there are lots of restaurant business ideas in Nigeria. Check them out below.

Related: Most Profitable Food Business Ideas to Start and Make Money in Nigeria

Restaurant Business Ideas in Nigeria

You can start a restaurant business in Nigeria using different approaches including.

Regular Restaurant

Opening a regular restaurant is the most popular of all, and the one that will first come to your mind while looking to start a restaurant business in Nigeria.

This restaurant business idea involves serving already prepared food and drinks to customers. It requires you to set up a good-looking and clean shop, hire staff, and get some expensive materials to get started. As your restaurant becomes popular over time, you’ll start getting lots of sales which means lots of profits.

Cook-On-Demand Restaurant

Cook-on-demand is relatively a new restaurant business idea in Nigeria. This involves taking orders for a specific type of food, preparing it, and getting it delivered to your customers.

This restaurant business idea is starting to gain ground, especially in Lagos, as there are lots of young entrepreneurs starting it up. The profit of a cook-on-demand restaurant is insane, as you can sell a plate of food for 3,000 Naira whereas all it takes you to prepare is just 700 Naira.

This restaurant business model is very easy as it can be started even from the comfort of your kitchen, and it can be started all alone.

Read Also: How to Start a Frozen Food Business in Nigeria with Small Capital

Mama Put Restaurant

Also known as a food canteen, mama put is just like a regular restaurant, although you don’t need to spend much in terms of setting up your shop. In fact, you can run your food canteen all alone by yourself.

This restaurant business idea also involves serving already prepared food. Food kiosks are popular in motor parks and school areas (usually primary and secondary).

Food Truck Restaurant

The food truck business idea is some of the most popular restaurant business ideas in Nigeria, as it is practiced in almost every state and city across the country.

It can also be referred to as a mobile food vending business, as it involves selling already prepared food to customers usually on the street.

This business can be started using a van or trailer, but realistically in Nigeria, it is commonly done using a wheelbarrow. You can often find this type of restaurant at bus stops, in busy areas (e.g Oshodi, Lagos), and marketplaces (e.g Aba market, Abia).

See Also: How to Start a Foodstuff Business and Make Money in Nigeria

Is Restaurant Business Profitable?

Yes, the restaurant business is very profitable in Nigeria, as it is a good source of daily income that could make you tens if not hundreds of thousands of naira every day.

This business is profitable due to the continuous increase in demand for food by many Nigerians. Although the profitability depends on your mode of operation, and also your location.

Of course, you can start a restaurant anywhere in the country, but it is more profitable in areas where foodstuffs are cheap. Also, some restaurant business ideas are more profitable than others.

For example, it could take you tens of sales to make N5000 profits from a mama put restaurant, whereas just two sales could get you such profit starting a cook-on-demand restaurant, or about five sales from a regular restaurant. Although, a regular restaurant and mama put moves faster than cook-on-demand.

Check Out: 33 of The Most Profitable Business in Nigeria Right Now

How Much Does it Cost to Start a Food Restaurant Business in Nigeria?

Restaurant business is very easy to start as it only requires cooking skills. Once you’re a good cook, you can start. However, how much will you need to start?

From buying the materials and equipment needed to get different kinds of foodstuffs and ingredients needed to prepare meals, as well as drinks to be served with meals, there’s a lot of investment to be made upfront to start a restaurant business in Nigeria.

Depending on the restaurant business idea you wish to go with, on a small scale, realistically it would cost you at least 100,000 Naira to start. While on a large scale such as a restaurant, you would need millions of Naira to set up a standard restaurant in Nigeria.

Related: 31 Smart Businesses to Start with 200K and Make Millions in Nigeria

How to Start a Restaurant Business in Nigeria

1. decide on the restaurant business idea to start.

Deciding your mode of operation is the first step in starting a restaurant business in Nigeria. Here, you want to choose whether you’ll be starting as a regular restaurant, a buka, catering, or a cook-on-demand restaurant. Doing this you need to keep in mind the demographics you want to target.

For example, if you’re living in a commerce area where daily business activities go on or an area where schools are, it will be best to settle for a mama-put restaurant or start with a food truck.

With good networking skills, you should be able to run a successful cook-on-demand business. Also make sure that your decision is based on your capital, as the cost of starting a restaurant business may vary based on location and type.

2. Acquire the Needed Skills

After deciding your m9de of operation, the next thing is to acquire the needed skill. Cooking skill is the major skill needed to operate a restaurant business in Nigeria.

However, depending on the type of restaurant you want to start, you may need more skills like networking, marketing, and so on. You can enroll in a catering school to learn how to make food for sale, and also how to set up a restaurant business.

Check Out: How to Start an Egg Supply Business in Nigeria and Make Money

3. Come Up With a Simple Business Plan

Based on your niche or mode of operation, you need to create a realistic business plan to work with. It is not necessary to draft the best business plan in the world, you can just make a simple one, but make sure it’s detailed and on point.

In your business plan, you need to account for both the short-term and long-term goals of your business including growth strategy, and financial projection.

While drafting your business plan, you need to carry out a little competitor research, know where they are lagging, and include the strategies that will help you do better than them.

More so, you need to point out who your customers are, and how to serve them better. Finally, in your business plan, outline a creative team management strategy to get the best out of your employees for the success of the business.

4. Arrange for Startup Capital

To start a restaurant business in Nigeria, you need to invest in a lot of things including the materials and equipment needed, as well as the foodstuff and ingredients required for cooking. Depending on the type of restaurant, you’ll need to account for employees’ salaries. Although this is usually after starting.

While most of the money is needed before starting, you need to find a way of raising the capital for your business. This can be achieved through personal savings, bank loans, loans from friends and family, business partnerships, or seeking venture capitalists.

5. Find a Suitable Location for a Restaurant

Regardless of the type, For a food restaurant business to succeed in Nigeria, you need to be strategic in planning a location for your shop.

You need to keep in mind the type of people in the area, how busy and hygienic the area is, and also watch out for competition. You cannot sit a restaurant in GRA and expect the most sales, as people living in such places are families with housewives who will always prepare food for them.

The best locations for your food restaurant business in Nigeria depend on your mode of operation. For food trucks and mama put, marketplaces and bus stops are ideal, while you can start anywhere offering a cook-on-demand service.

More so, you can sit a regular restaurant on a street. Just make sure it is on the roadside and can be easily located by potential customers.

Related: How to Start Okrika Business in Nigeria

6. Get All The Needed Equipment

The main things you need to start a restaurant business in Nigeria are the required types of equipment (cooking wares), as well as the foodstuffs and ingredients for cooking.

Usually, the equipment is general and they include gas cookers, pots, plates, tables, chairs, and so on. However, when it comes to the foodstuff and ingredients, they are niche specific.

That means the foodstuff and ingredients to arrange for should be based on the type of food you want to be selling. Make sure you buy those ingredients in small quantities as you’re just starting. This is because most foodstuffs and ingredients can’t stay long before they spoil.

7. Register Your Business (If Required)

Although not necessary, if you want to operate a standard restaurant, you’ll need to register your business name with the Corporate Affairs Commission (CAC).

Also, you need to do some research if there’s any association of restaurants or food sellers in your area to join, so as not to get disturbed after getting started.

8. Employ Staff

Even if it is someone that will help you watch plates, you would have to employ workers to help you with some aspects of the business.

In this step, you need to make sure the person you hire understands the business. Also, make sure your employees are able to meet not only your expectations but most importantly treat customers well.

9. Get Started and Get Working

With everything from step one to eight now in place, the next thing is to get started by cooking, packaging, and serving customers. Remember that customers really matter, so make sure you’re offering a satisfactory service.

As part of starting, you’ll need a strategic customer acquisition plan. This can be done by promoting your business and letting people know that there’s a new restaurant in town.

Here are some tips on how to promote your food restaurant in Nigeria.

• Brand your business by creating banners to let people know what your business is all about.
• Design your shop to describe your business.
• Encourage friends, family, and neighbours to help in advertising your business through word of mouth.
• Build brand awareness by visiting schools, firms, and even homes in your area and telling them about your business.
• For a start, offer discounts, and also make your food look good, tasty, and most importantly, cheaper than your competitors.
• Create an online presence for your business.

Equipment needed to start a restaurant in Nigeria

The equipment needed to start a restaurant in Nigeria includes:

• Electric Cooker

Food Restaurant Business – FAQs

Which type of restaurant is most profitable.

In terms of profit margin per sale, the cook-on-demand restaurant is the most profitable type of restaurant in Nigeria. While in terms of sales a regular restaurant is more profitable, as it moves faster.

How do I start a mini restaurant?

You can start a mini restaurant in Nigeria by simply getting the needed skill, finding a shop, getting the needed equipment and ingredients for cooking, and getting started.

What do restaurants sell in Nigeria?

Nigerian restaurants sell white and jollof rice, amala, eba, pounded yam, semo, fufu (akpu), beans, yam, etc. All these are usually served with different types of soup, fish, and neat including goat meat, ponmo, brokoto, chicken, bush meat, and so on.

The food restaurant business is very profitable, and an ideal business for those who love cooking, as it allows you to make money from what you like doing. With this post on how to start a restaurant business in Nigeria, I believe you’ve gotten all you need to get started.

Tags: business ideas Restaurant

His name is Olatunde, he is the founder of Nairarush.com.ng. He is Nigerian who likes sharing information about anything about finance. And because he has been making money online for years now, he also share some information about investing, online business ideas, loans for students and businesses, and lots more.

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Thank you for this detailed article on how to start a restaurant in Nigeria. This will help in the restaurant i’m trying to set up. Thank you

This is awesome!!!

This is very awesome, just the right detailed explanation I need .. please can u help me draft a business plan?

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8 Steps to start a video game business in Nigeria (2024)

• Updated March 19, 2024
• Read Time 10 mins

The video gaming business is one of the industries that continues to record outstanding growth in Nigeria and the rest of the world. Millions of people globally love playing games. You can find game enthusiasts enjoying a top-notch online slot when they are free, either for fun or profits.

The popularity of video games, especially among the young population, makes the gaming business a lucrative venture. Video games are a source of entertainment for the masses where some people can hardly go a day without indulging in the sport. 

If you are an entrepreneur and would like to invest in the gaming business, you must get it right the first time to run your entity successfully and profitably.

Thankfully, there are plenty of gaming business ideas to explore to start an entity you will love. One of them is starting a video game business where revelers can come to your establishment to play their favorite video games.

Below we will give you a comprehensive guide on the 8 most important steps to start a video game business in Nigeria. 

Table of Contents

• 1. Start with a Detailed Business Plan 
• 2. Get Capital and Equipment 
• 3. Get a Strategic Location 
• 4. Choose the Proper Business Model 
• 5. Study the Latest Trends and Productions 
• 6. Register your Gaming Business 
• 7. Aggressively Promote your Entity 
• 8. Know How to Anticipate and Tackle Issues 
• Conclusion 

How to start a video game business in Nigeria

1. start with a detailed business plan.

The first step towards establishing a successful gaming business is to have a solid business plan in place. It is particularly important if you are going to be seeking funding for the entity. An excellent gaming center business plan will essentially include setting your goals and how you intend to achieve them. 

Great plans include details that can help improve your chances of success. They feature information like market analysis, customer segmentation, marketing, competitive analysis, cash flow projections, logistics and operations plans, and the path to long-term growth. These plans can also help you accomplish several things, including:

• Starting your gaming business on the right foot.
• Remain effective in the development and management of priorities and operations. 
• Establishing specific short and long-term goals. 
• Remain credible and coherent with your employees and partners. 
• Launch a crowdfunding campaign or raise funds for your gaming business.

A well-written plan will also help you track the progress of the entity when it begins to grow. Gaming business plans are tools that can help you make crucial decisions. Note that entrepreneurship presents endless crisis management and decision-making.

Gaming business plans can also help you anticipate problems you may face during operations to aid you in coming up with realistic solutions. You do not even have to write the plan on your own. There is an option of hiring an expert gaming business plan writer or accountant to help you out. 

2. Get Capital and Equipment

Your gaming business will ideally be in an indoor location that will require some level of structure to attract as many customers as possible. Consider the capital you have at hand if you do not plan on borrowing extra funds.

The capital you will need to start a gaming business will depend on the number of clients you wish to serve and the type of equipment to buy. Seeing that the venture is mainly electronic, it will not come cheap. However, high investments will likely see you get high returns.

You will need several appliances for this venture, and these include: 

• A Games Centre- it is the game environment where you will set the equipment for play. Invest in a good space, as this will determine the patronage you will end up with. 
• TV Sets and Chairs- flat screens and comfortable chairs are non-negotiable if you want to offer unmatched gaming experiences. 
• Games Consoles, GamePads, and Games – Game consoles to invest in include Play Stations and Xboxes. For your video gaming business to thrive, you will also need to buy actual games for your clients. Try and keep up with new releases so that customers get the products they want at all times. 
• Generator Set- to keep players busy, you will need a steady supply of power. Generators come in handy when power fails. 

Other optional equipment you can get for your business include sound systems and fans that can give your business a better competitive edge. 

3. Get a Strategic Location

Location is everything when it comes to your gaming business. Understand that the location of your gaming business will set the tone of your entity. It may also decide what customers think about your establishment.

Look for a space that gamers can easily access. Good roads and reliable water and power supply are a few factors to have in mind before you settle for a gaming business location. 

Avoid dingy alleys as your shop may end up being a hideout for criminals. Pick a secure location for the safety of your equipment and clients as well. Most importantly, before you start a gaming business, it is vital to ensure that it is close to the market to increase your chances of success.

A place with tons of foot traffic, especially from younger people, is bound to be a hit.  

If you will be renting out a place, consider the price and determine whether it is within your budget. It is usually best to get a space where you will not need to do a lot of renovations before the gaming business can kick-off.

Remember that you want to pick the perfect location for your gaming business where you will not have to keep moving because it can be inconvenient and expensive. 

4. Choose the Proper Business Model

You must have a good business model to run your gaming entity. Common options available when choosing a gaming business model include: 

• Advertising models 
• Franchising models 
• Affiliate marketing models 
• Razorblade models 
• Freemium models 
• Subscription models
• Reverse razor blade models 
• Ecommerce models 
• Agency models 

Compare the various models to determine the one that makes the most sense for your gaming entity. Whether you want to work with a cloud gaming business model or a mobile gaming business model, there are various factors you need to put into consideration. The most important is thinking about the needs of your clients. 

For a flourishing gaming business, you also need to consider how your clients will interact with the gaming business.

It’s vital to also consider your value proposition, competition, and market potential. Be sure to pick a model that ensures you make money and consistently deliver value to your clients. 

5. Study the Latest Trends and Productions

Running an outdated gaming business will only see you incur terrible losses. To avoid this, you must be very careful with the products you offer clients. Study the global gaming business to know what works and what does not work.

You cannot only have video games that were produced in the 90s in your portfolio. Extensively research the best companies that offer gaming products for your business. 

Learn what’s hot in the industry and the things to avoid if you want your gaming business to remain relevant. Always remember that your customers are key to driving the success of your video game establishment.

You want to make sure the products and services you offer are in line with what they need and want. It’s also vital to get educated about future gaming and business technologies. This way, you will not spend too much time and other resources investing in something that will be obsolete in the next few years. 

You can gather information about relevant trends for your gaming business in multiple ways. One is through networking with other like-minded individuals. They can help pinpoint the trends you should focus on.

Doing market research can also help you get information straight from the source. Another option to explore is to look at the industry leaders. They can help you jump on the right trends that will see you elevate your gaming business to the next level. 

6. Register your Gaming Business

Never attempt to run a gaming business without getting proper documentation. It will save you a lot of headache and harassment from enforcement agencies as well as other elements. CAC (Corporate Affairs Commission) is the accredited business registration commission in Nigeria .

Register the gaming business in your business name as an entity that is aimed at making gains. Having a unique name prevents other entrepreneurs from using it. In addition to the name, you will need to present other vital information to register your gaming business in Nigeria, such as:

• General nature of your establishment 
• Address of your gaming business 
• Name, occupation, address, and other details of the business proprietors. 
• Signatures from all the proprietors 

You can also try and source an operating gaming license from the gaming board of the area where you want to set up your entity. It will aid you in getting the license you need to operate a well as accommodate video game lovers legally without security operatives’ interference.

For this, you will need to write an application letter to the Director-General of the Nigeria Lottery Regulatory commission demonstrating your aspiration to start a gaming business in the country. If you get cleared, you will have a clearance certificate that allows you to operate a business in the industry of gambling.

7. Aggressively Promote your Entity

If you are just starting your gaming business, you need to spread the word about its existence to attract potential clients. Depending on your marketing budget, there are multiple avenues you can invest in to let people know about your video game entity.

If you do not have too much money, social media is your best bet. Open up pages on various platforms like Facebook and Instagram and put in the effort to promote your pages. 

You can also offer discounts, especially in the first few days. Everyone loves a good introductory offer, and this is bound to bring game lovers your way. You can copy the 200% bonus model to make your gaming establishment more attractive.

This may even mean that some clients can get to play some games for free. It will allow them to sample what your gaming business has to offer. If they like what they see, they will tell their family and friends, and this is how your establishment will become popular.

Be sure to offer A1 services in your gaming business at all times because it is the only way you will attract customers and retain them for long. 

8. Know How to Anticipate and Tackle Issues

When operating a gaming business, you must also understand the environment where your operations are located. In this case, because it is Nigeria, understand that a section of the population deems video gaming businesses as illegal and socially wrong.

You may have to endure police raids from time to time and complaints from parents of young gamers. This is something that can have a significant impact on your entity. To steer clear of such problems, you need to be well prepared. 

For instance, if parents come screaming into your establishment demanding that their children leave the gaming zone, try to stay calm. It’s also advisable to set rules for your gaming business such as:

• Ensure that there is a written rule banning teenagers in uniform from visiting your gaming business. 
• Prohibit access to the game lounge by students during school hours. 
• Have a non-refundable policy for games revelers play. 

Keep the rules in a place where everyone who enters the gaming lounge can read. When it comes to unlawful police raids, be sure to have your license in place. Try as hard as possible to ensure that dubious people do not frequent your gaming establishment because they will constantly attract law enforcement. 

Running a gaming business in Nigeria can prove to be a profitable venture if you do it right. Following the above steps will put you on the right track to operating a business that will grow, and you will be proud of. 

Do you operate or want to start a gaming business? Which steps above have you followed? Do you have any other valuable advice for an individual looking for useful information on how to start a gaming business? We would love to hear from you in the comments.

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Thomas Glare

Thomas Glare is a dedicated video gamer, reviewer, and content writer, always willing to analyze and provide feedback on new games in the industry. His passion is not limited to a specific genre, but he definitely appreciated a thought-through product, regardless of its main idea.

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• Thursday, 16th May, 2024
• Rest of the World
• Health & Wellbeing
• Life & Style

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Aigboje aig-imoukhuede appointed france-nigeria business council president.

The Chairman of Access Holdings Plc, Aigboje Aig-Imoukhuede, has been formally appointed as the President of the France Nigeria Business Council (FNBC) by the President of the French Republic, President Emmanuel Macron.

A statement yesterday, disclosed that the appointment was made the esteemed Choose France Summit 2024, held on Monday.

The statement added: “The France Nigeria Business Council (FNBC) stands as a pivotal coalition of Nigerian private sector business leaders, committed to enhancing bilateral relations between Nigeria and France.

“Its core objectives revolve around the facilitation of trade, investments, infrastructural development, job creation, and cultural integration between the two nations.

“Since its establishment in June 2021 under the auspices of President Emmanuel Macron, the FNBC has diligently utilised its member network to champion investments across key business sectors, fostering cultural understanding and driving economic growth between Nigeria and France. Notably, it has catalysed Nigerian businesses’ ventures into investment opportunities within France.”

Comprising 13 distinguished members, the Council boasts prominent figures including Aigboje Aig-Imoukhuede (President), Abdul Samad Rabiu, Gilbert Chagoury, Mike Adenuga, Aliko Dangote, Jim Ovia, Tony Elumelu, and John Coumantaros. Additionally, Kola Karim, Leo Stan Ekeh, Daisy Danjuma, Gbenga Agboola, and Jean Haas serve as integral members, with Jean Haas holding the position of Secretary.

Aig-Imoukhuede’s appointment follows the passing of Herbert Wigwe, the Council’s former President, in February 2024.

The Choose France Summit is an annual gathering that convenes business magnates, investors, and governmental dignitaries to explore investment prospects within France. The highlight of the Summit was the Presidential Dinner, characterised by high-level engagements and mutual commitments between participating parties.

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