If you are ready to take the plunge, this is the right time to start a plush pillow lounge. The economy is in sync with paychecks (sort of), and the plush, lux atmosphere will appeal to all those who were confined to small spaces during the recent pandemic. In the following paragraphs, we will outline the steps to take to open the lounge and create a growing clientele of satisfied plush pillow-sitters and lux cocktail aficionados.
If you can already envision this lounge, you are well on your way to starting it. However, no successful business has started without the structure to support it. Walk through the process with us as we present the basics, the additions, the extras, and the best way to scale the lounge business and move it to long-term growth and success.
First, gather the licenses and permits needed to serve alcohol and food fare in your city. You may need to secure any number of these; well ahead of launching, start arranging licenses and permits.
Second, acquire a location. This should be one that provides easy access and a friendly, safe environment in the neighborhood, and it should be small enough to convey intimacy while large enough to accommodate up to 50 people. Consider the interior atmosphere: is it conducive to conversations, or will the sound be overwhelming? Are there any furnishings, or will you need to purchase everything to start? Is there a kitchen if you choose to provide fare? Consider the location carefully, as it will cost more to upgrade the interior if you choose to purchase a venue that needs considerable work.
After securing the location, have an interior designer assist in planning the environment and atmosphere. Ask for low tables for patrons and assorted plush pillows throughout the room in place of chairs. Include a bar or use servers instead, but you’ll want to ensure areas for cocktail preparation and staging in either event. A designer can assist in every step of the interior and will make valuable suggestions along the way.
With a few large decisions cemented, it is time to plan the structure of the business. To ensure the outcome you seek, you’ll want to include this business plan template as a comprehensive guide. While it may be tempting to set the business plan aside to move on to more exciting items, the business plan is a compass of sorts in that it informs your direction for this lounge and will ground your efforts to move toward long-term growth. Therefore, this is a good time to get started on the business plan. This is a brief outline of the components.
Business Plan Outline
- Mission and Goals of the Company: You’ll give the backstory for the “why” behind the company and sketch out the goals for the future of the company. Lenders and investors will be interested in this portion of the plan.
- Assessment of Target Audience: You’ll want to assess the type of customers who will enjoy the lounge, including ages, drink choices, socioeconomic groups, and musical preferences. Your plan should include this information, as it will inform the marketing strategies for the lounge.
- Analysis of Competitors: Critically important for the lounge is an analysis of competitors in the area around the lounge. Determine what those competitors offer and if there are special discounts offered that might threaten your lounge. By differentiating your lounge with a unique interior, you’ll be able to offer an improved experience and better options for entertainment.
- Financial Plan and Forecast: If you are going to need funding, the plan and forecast will be crucial to your business plan. Ensure the details outline the milestones and growth anticipated for the future.
- Marketing Strategies: The lounge will need to be heavily introduced through various forms of media and advertising. Consider also how to build your brand and market-related merchandise to support the revenue of the lounge.
- Operational Plan: An operational plan should be included to detail how many staff members will be working and the plan acquired to lead and train them—also, direct attention to the member who will handle human relations issues on staff.
These steps are only the beginning of the plan; however, they offer a sketch of the elements that will need to be prepared in order to create a presentation for startup funding. Be aware that funding may be offered by lenders, who will want repayment with interest, and lenders, who will want a percentage of your lounge. In each of the steps outlined here, you have the opportunity to grow the business and reach for the outcomes you desire. We wish you the best of success.