Opening a live music venue could be an exciting and profitable business opportunity for your client. Still, aspiring entrepreneurs must be ready to put much work and planning into this venture. Venue operators must be strategic about controlling costs and logistics to stay cash-positive. They must also implement a comprehensive risk management strategy to protect themselves against loss and liability scenarios. There are several things your clients must know about starting a live music venue, and we are here to share them.
In the early stages of the planning process, identifying the best site for a venue is crucial. The location of an entertainment facility could be determinative of its success. Ideally, a venue should be in a busy, commercial area rather than a remote locale. Being proximate to an existing hub of entertainment venues could be advantageous. Still, it is best to avoid trying to stake a claim in an area already oversaturated with these types of businesses is preferable.
Venue operators should limit their search to commercial spaces that have the correct zoning classification for their intended use. Obtaining a variance or applying for new zoning permissions can be an arduous and protracted process.
Next, owners have to consider the size of a space carefully. If a place is too small, it can be challenging to maximize revenue because occupancy will always be limited. Also, a cramped space might need the right aesthetics for live entertainment.
To run an establishment that hosts performances and serves food or alcoholic beverages, principals must obtain all the licenses their city or municipality requires. Procuring licensing is one of the first steps to starting a live music venue.
In addition to a general business license, a new establishment will probably need an occupancy permit and liquor license. Before applying for these credentials, venue operators should familiarize themselves with relevant building and fire code regulations and get their facilities into compliance.
Damage to a venue or equipment could be financially catastrophic for venue owners. Live music venues program insurance can mitigate owners' risk exposure effectively. In addition to property insurance, live music venue protection should include general and liquor liability. Without these safeguards, owners will not have sufficient resources to contend with a lawsuit if an accident occurs on the premises.
Well-planned promotional activities are essential to attract patrons to a live music venue. Owners should invest in cost-effective digital outreach and engagement. They should also leverage relationships with performers to capture attention from their target base of attendees for specific events.
Lastly, venue operators should assess expenses judiciously and forecast earnings conservatively. New business owners cannot accurately estimate overhead and revenue, particularly in the entertainment industry. Smart budgeting and practical risk management measures will make new venues better able to weather ups and downs as they work toward growth.
At RMS Hospitality Group, our expertly crafted policies are written specifically for the hospitality industry. We offer custom tailored solutions to meet any venue's specific needs. For more information, contact our knowledgeable experts today at (888) 359-8390.
At RMS and associated firms, business continues as usual. Our staff is remote-capable and available to handle all partners, brokers, and insureds at the present time.
