Lounge Business Plan Template [Updated 2023]

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I. Executive Summary

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Business Overview

[Company Name] is a cozy community lounge located in [Location]. Our mission is to create a fun and relaxed environment where residents can buy drinks and food, and socialize with their friends, family, and neighbors. We also have fun activities such as pool tables and darts and have special events like karaoke nights. With our relaxing environment, fun activities, good food, and friendly staff, we aim to make [Company Name] a home away from home.

Products Served

[Company Name] provides a relaxing and inviting atmosphere to unwind in after a long day or week. Our friendly staff and welcoming environment encourage relaxation and conversation. Customers can indulge in an extensive menu of drinks, appetizers, and dinner options. They can also enjoy the multiple sources of entertainment [Company Name] provides, including darts, pool, and karaoke.

Customer Focus

[Company Name] will primarily serve the residents who live within a 20-mile radius of our lounge and workers within a quarter-mile radius. The demographics of these customers are as follows:

  • 85,521 residents
  • 6,500 workers
  • Average income of $67,200
  • 28% married
  • 52% in Mgt./Professional occupations
  • Median age: 31 years

Management Team

[Company Name] is led by [Founder’s Name] who has worked in the industry for [X] years. Throughout his career, [Founder’s Name] has managed lounges, nightclubs, and similar establishments throughout [Region], one of which is [Lounge], the most visited lounge in [Location]. He has also worked for the [Bar/Club Name] where he managed a crew of 25 people. He also graduated with an MBA from [University] in [Year].

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

  • There are very few lounges in the community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when launched.
  • Our location is in a high-volume traffic area and will thus be highly convenient to a significant number of passersby each day.
  • The management team has a track record of success in the lounge business.
  • The lounge business has proven to be a successful business in the United States.

Financial Highlights

[Company Name] is seeking a total funding of $560,000 to launch its lounge. The capital will be used for funding capital expenditures, building and design, bar equipment and kitchen appliances and utensils, labor costs, marketing expenses, and working capital.

Specifically, these funds will be used as follows:

  • Design/build: $300,000
  • Equipment for bar and kitchen: $150,000
  • Working capital: $110,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break even

Top line projections over the next five years are as follows:

Financial SummaryFY 1FY 2FY 3FY 4FY 5
Revenue$560,401 $782,152 $1,069,331 $1,379,434 $1,699,644
Total Expenses$328,233 $391,429 $552,149 $696,577 $776,687
EBITDA$232,168 $390,722 $517,182 $682,858 $922,956
Depreciation$7,000 $7,000 $7,000 $7,000 $7,000
EBIT$225,168 $383,722 $510,182 $675,858 $915,956
Interest$6,016 $5,264 $4,512 $3,760 $3,008
Pre Tax Income$219,152 $378,458 $505,670 $672,098 $912,948
Income Tax Expense$76,703 $132,460 $176,985 $235,234 $319,532
Net Income$142,449 $245,998 $328,686 $436,864 $593,416
Net Profit Margin25%31%31%32%35%
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