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Pool Hall Business Plan

This is a guideline for the minimum detail you would include in a pool hall business plan. It is based off a similar outline originally provided by Dufferin Games, Ltd. in 2001. It is by no means complete in terms of modern-day pool hall businesses but it gives you a bare-minimum list of what you need to look at and research when opening up a pool hall.

Pool Hall Business Plan

A pool hall business plan is the first step towards organizing your ideas when you are starting a billiard room business. The business plan for a pool hall is a powerful tool that can provide you with insight into potential problems to be avoided, details that can improve your performance, and a realistic analysis of your day to day business requirements.

Pool Hall Business Plan Summary

In the first section, document the following:

  1. Business name
  2. Physical address of the pool hall
  3. Phone numbers, website addresses
  4. Planned opening date

Business Forms

In your pool hall business plan, include all completed business forms such as business registration certificates, incorporation documents, pool hall permits, liquor licenses, etc.

Physical Location and Facility

In the business plan for a pool hall, document your plan for the following:

  1. The pool hall and applicable zoning
  2. Traffic (vehicle and foot) patterns, parking, vehicle access
  3. Neighboring businesses, including letters from the owners welcoming your facility, to be put in an appendix
  4. Purchase or lease contracts
  5. Size
  6. Condition of facility (age, restrooms, ceiling, floors, air/heat, electrical outlets, security, seasonal considerations, air/flow/smoke eaters, signage, and rules for tenants). Renovations, both interior and exterior, who pays for them, and dates completed.
  7. Floor plan including placement of pool tables, video machines, chairs, pro shop, eating area, etc.
  8. If you are going to have something that requires special physical features, such as a grill or kitchen, include pertinent facts.

Market Research for Pool Hall Business Plan

In your pool hall business plan, you will document, in detail, the market research you did in preparation for opening your pool hall. Include details on the following:

  • The need for a billiard room in the target geographic area
  • The demographics with 5-7 miles of your facility
    • income ranges
    • percentage of apartment dwellers
    • age breakdowns
    • percentage of dual income families
    • sex
  • Any existing Competition - Include not just other pool halls, but other sources of "leisure" where potential customers might spend their time instead of at your pool hall.
    • billiard halls
    • other recreational facilities
  • Trade publication research
  • Trade show attendance - Document any cue sport industry trade shows you attended in preparation for opening a pool hall business.

Pool Hall Marketing Plan

A pool hall business plan should include full details on the marketing plan. To develop a pool hall marketing plan, spend time and work out the details for the following items:

  1. The image of your room and how you’ll establish it
  2. Meeting and beating existing competition
  3. Pre-empting competition
  4. Advertising (budget, media mix, seasonal)
  5. Promotion (local tournaments, charity, etc.)
  6. Price structures and their competitiveness
  7. Demographic targets and draws
  8. Methods of building repeat business
  9. Credit policy, if any
  10. Membership policy, if any
  11. Staff training sales
  12. Availability of sales/promotion assistance from manufacturers
  13. Community involvement - This is EASILY one of the most important in terms of integrating your new pool hall business into the minds of the community and your future customers. To build consistent, recurring customer patterns, plan for each of the following:
    • business league
    • civic organization leagues
    • charity events, charity tournaments
    • regional, tourist-drawing tournaments
    • national tourist-drawing tournament
    • special programs and facilities for special groups (handicapped, underprivileged, special kids, etc.)
    • programs for secondary schools, local colleges, other educational facilities (classes, instruction, discounts)
    • programs for seniors

Pool Hall Retail Sales & Service

In the business plan for a pool hall, you should include detail on any retail sales plans and service work you will provide. Include:

  1. Percentage of space devoted to retail
  2. Plans for future expansion or contraction of retail space, as needed
  3. Percentage of income expected from retail
  4. Inventory costs, tracking plans, re-stocking plans
  5. Display and promotional methods
    • quantity discounts
    • "touch" or "look" displays
    • use of discounts or "sales"
    • location of displays
    • location and amount of stock
  6. Items to be carried in retail - Detail out each item, and for each, include:
    • mark-up of each
    • expected rate of turnover for each
  7. Theft prevention - Document methods for theft prevention - from a customer standpoint and a staff standpoint. Plan for the fact that both can and will likely occur.
  8. Service required after the sale
    • service agreements
    • guarantees (manufacturer & yours)
  9. Sales sheets/flyers/catalogs
    • internally generated
    • supplied by manufacturers

Pool Hall Equipment and Fixtures

Plan and document the following in your pool hall business plan:

  • All equipment needed, the terms available, and the dates available. Include everything from pool tables, house cues, billiard balls, chalk, cash registers, bar equipment, pro shop fixtures, etc.
  • Document the expected live of the equipment and the rate at which you expect to replace it
  • Outline any special requirements (e.g. 3 phase, drainage, etc.)

Pool Hall Insurance Requirements

Outline your plan to insure the business including the coverage, provider, costs, etc.

Location and Building

You will need to include how your facility will look, both inside and out in your business plan.

  • Exterior drawings and/or photos
  • Interior layout, drawings, and photos - for each area

Utility Agreements

In your pool hall business plan, document the following:

  • Deposits required for all utilities
  • Existing utilities and promised dates of additional needs

Pool Hall Business Plan Financials

  • Monthly profit & loss & loss - You will need to document the source of funds, amounts, payback schedules (if any), place of deposit and liquidity.
  • Additional Capital - You will need to document the source of funds, amounts, payback schedules (if any), and dates needed.
  • Cash Flow Projections - Your pool hall business plan should include month one profit & loss, six month profit & loss, and first year profit & loss statements. Also describe how the business will deal with income that is less, and more, than projected. Do this for both a 10% margin on either side, and a 50% margin on either side. Both are real possibilities.
  • Tracking Credits & Debts - You will need daily reports for tracking, and will need to insure accuracy and completeness. You will also need a good set of reports for weekly cash flow monitoring, including totals, and by department (e.g. pool table time fees, pro shop sales, bar sales, etc.). You will also need monthly profit & loss statements.
  • Petty Cash Control - Create a plan for the establishment of Visa and MasterCard Acceptance Program e.g. set up merchant accounts, etc.
  • Create a plan and policy for petty cash control

Miscellaneous Items

Other things to keep in mind and document while making a business plan for a pool hall include:

  • Coming competition, road building, nearby residential construction, and other physical changes on which you have information.
  • Zoning, laws, employment, movies/television featuring pool and other future non-physical events on which you have information.

NOTE: This is only meant to be a guideline to start preparing to run a pool hall business, and is not presented as a guaranteed formula. It does not constitute business advice and thus, should not be relied up in any way. Please review the Billiards Forum terms of service for the full disclaimer.

Pool Hall Business Plan

  • Title: Pool Hall Business Plan
  • Author: (Billiards Forum)
  • Published: 2/2/2017 8:37:01 AM
  • Last Updated: 2/2/2017 8:56:18 AM
  • Last Updated By: billiardsforum

Pool Hall Business Plan

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