Hangout Startup Capital Requirement: N250,000 · Hangout Startup Capital Requirement: N250,000 ... Just like the viewing centre business, ... Hangouts in Nigeria traditionally sells

www.businessideasnigeria.com

For consulting service Email: [email protected] Call: 234-8056433797

Hangout

Startup Capital Requirement: N250,000

Summary: This is having fun and making money at the same time. This is a venture that really emphasizes “you are the boss”. With a capital of between N250,000 to N500,000 you can have a turnover of over N1Million just having fun and managing resources.

IntroductionHangout is your own relaxation spot; where you relax and make money, so long as you can automate things and let people make money for you. Just like the viewing centre business, you will have to be very creative and have a unique selling point. You have to decide the services you would offer, the limit of customers and the class of customers. Depending on your location and class of customers, you can calve a niche for yourself.

Required Resources Assets

Business spaceFurniture and fittingsEssentials: Generator, Refrigerator, serving accessories etc

PersonnelMinimum of Three- Caterer- Bartender


mailto:[email protected]



- Service personnel(s)- Sales person- Business manager- Security

CapitalWith N250,000 to N500,000 you should be good to go. Leaving room for growth, it is often better to start small, get to understand the market and take advantage of the gaps.

Required Skills- You must be sociable- Have good management skills- Must be very good at organizing- Must be creative- Good marketing skill

Full description of Operations Business operation

Setting up: There few basic issues you have to consider before you set up your hangout business;

a. Location: Hangout is more of a relaxation centre that is, it is meant to host people after the day’s work and on weekends, so it has to be between workplace and residential areas, yet easily accessible for the target customers. The environment must be relaxing, if it is an open space, there must be sheds and trees for fresh air but if it is an enclosed area, it should be well demarcated, must have good ventilation and lightened to suit the business.

b. Class of Customers: The location has a lot of influence on the kind of customers you would expect. With your class of customers in mind, locate your hangout within their confluence. Targeting the high class may be more profitable but offer less turnover, while the low class may offer more turnover but less immediate profit. Likewise setting up hang out for the high class would be more expensive compared to setting same for the low class; however whichever it is, the business would still be sustainable.

c. Types of services: Hangouts in Nigeria traditionally sells Pepper soup, Alcohol, Asun (Barbeque Beef), Suya (Barbeque Spiced meat), Local soups and delicacies while the modern ones have gone a step further to include Relaxing music, Side attractions like games, dancing ladies, karaoke, special raves, massages etc. You have to decide what you are starting with and what your unique selling point will be.

Business Management: The business is expected to be compartmentalized;





a. The caterers: This department takes care of the cooking, the barbeque, the baking etc. whatever has to do with the edibles that would be sold. You may decide to employ and manage this unit yourself or contract the unit to caterers and you just charge them rents.

b. The Service team: This department ensures whatever is ordered is served. Get orders from customers, place the orders with the caterers and bartenders, and ensure orders are delivered to customers as timely as possible while updating the sales team on invoices or bills.

c. The Sales team: All sales pass through this department, so that they can be put on customer’s tab, depending on which billing system to be used. The sales team issues the invoice, collect payment and account for the money.

d. Entertainment Unit: This department is in charge entertainment; music, games, side shows, karaoke etc. They come up with events that can stimulate excitement and increase patronage.

e. Bartender Team: This team may be merged with any of the aforementioned teams, while the business is still in its formative days/years. The unit is meant to take care of drinks orders, drink mixing and in some cases serving.

f. Security: The importance of this unit depends so much on your class of customer. The higher the class of your customer, the more important you have to take their security.

Note that for starters, you can have an average of one person per department and increase this as the business grows.





ObjectivesThe Hangout is designed to be a relaxation place for people after a hard day’s job or a place they can hang out on weekends and catch some fun.

The Hangout is expected to serve as meeting point for people outside their usual working environment and interact with no formal precautions.

BenefitsIf you need a part-time job, this is one of the most rewarding. Due to the nature of the business, weekday’s business often don’t start till 5pm while weekends don’t start till around 2pm, making it ideal as part-time job.

You get to meet different people, relate with them and even from their bigger opportunities might present themselves.

You become the centre of attention. The owner of the Hangout is often believed to see and know everything. People will want to be around you, feel your pulse and seek your opinion in almost everything.





The return on the business is exceptional, especially when you are able to monitor the sales and the accounting.

Possible Limitations and solutionsLocation of business: This can be tricky as business such as this requires a location when the noise will not disturb; an area that is safe and at the same time accessible. Getting this might be a little expensive.

Management: Management of an outfit like this requires experience and expertise. Pilfering tend to be high amongst workers in this kind of business and have actually grounded many of this business. So the management must be topnotch with well designed mechanism to ensure pilfering or stealing is kept to its barest minimum.

Financial Analysis

The first thing you need to note is that the business may not pay up all the capital invested in it, in the first three - six months, however considering the capital is one off, aside the rent, once the capital is covered the profit is unstoppable.CostRent: Rent varies from one location to another ranging from N40,000 to N400,000/year, while it could also be more in some high brow areas in Lagos. If you decide to go with open space, the rent may not be this high however, you would require money to build sheds or tents.

Furniture and fittings: Setting up table and chairs for 100 customers, would mean 25 tables and 100 plastic chairs which would be about N100,000. You could also decide to have VIP sections as well as executives. Demarcations, and other furniture and fittings such as wine racks, desks etc for general use will cost an extra N25,000 to N50,000.

Other Essentials: Generator, fridge or deep freezer, TV Screen and decoder, Music and karaoke sets, speakers etc. Budgeting N100,000 is a good place to start.

Revenue: The revenue depends strictly on your customers’ capacity to spend, however on food and drinks the percentage of profit is usually between 25% and 30% of amount spent by each customer. Using our 100 customer’s hypothesis spending an average of N1000, the gross profit on daily basis will be 25% of 100,000 and that is N25,000/day and N500,000/month. Remember this is an estimate, it could be more it could be less, and it is a gross profit meaning there are other cost that are yet to be factored in such as salaries, cost of power, security, water, damages etc.

Future Forecast Prospects

Hangout can always grow in capacity strength and locations, while employing more hands to handle the management aspect for you.





ConclusionHaving your own hangout seals you as the ultimate boss; aside the money you will make, it gives you opportunity to meet people, have privileged information and have access to the decision makers.

References For Service consultation contact us via mail at [email protected] or call within hours +234-8056433797 Note that this may attract service charge.




Documents

Hangout Startup Capital Requirement: N250,000 · Hangout Startup Capital Requirement: N250,000 ... Just like the viewing centre business, ... Hangouts in Nigeria traditionally sells