Small neighbourhood nightclub

Local nightlife customers paying for entry and drinks, plus groups booking tables, birthday parties and private events.

Bar sales are usually the main income, with cover charges, table or bottle service, ticketed events and private hires adding to it.

• Managing staff and shifts
• Handling cash and tight margins
• Booking DJs and promoting events
• Keeping customers safe and calm

• Liquor licence rules and approval times, which differ by province and municipality (Quebec has its own system)
• Zoning, fire occupancy limits and noise bylaws, which can rule out a location
• Staff training for serving alcohol and any security staff licensing required in your province
• Liquor liability and commercial general liability insurance, which can be costly for late-night venues
• Music licensing fees for playing recorded music in public, so check with the relevant Canadian licensing bodies
• Late hours, difficult customers and high fixed costs, which put pressure on cash flow

Startup costs are typically estimated at around $120,000 to $500,000, depending on premises, fit-out, sound system and licensing. Liquor liability insurance for late-night venues can be costly, so factor that into your budget.

Things to check include liquor licence rules and approval times, which differ by province and municipality (Quebec has its own system), plus zoning, fire occupancy limits, noise bylaws, staff training and music licensing fees.

Monthly revenue is typically estimated at around $40,000 to $200,000, depending on size, location and event calendar. Late hours, difficult customers and high fixed costs put pressure on cash flow.