How to start up a pool hall business

Starting a pool hall business is an exciting venture that promises to combine leisure and entertainment for enthusiasts of the sport. With its timeless appeal and social nature, a well-run pool hall can become a bustling hub for friends and strangers alike.

The key to success lies in selecting a prime location with ample foot traffic and a target audience interested in billiards. A well-designed, inviting ambiance with comfortable seating and a selection of beverages and snacks can enhance the overall experience.

Equipping the hall with top-notch pool tables and ensuring they are well-maintained is crucial to keeping customers coming back. Offering various pool game variations, hosting tournaments, and providing pool lessons can further engage the community and create a loyal customer base.

Embracing innovative marketing strategies, embracing technology for booking tables and tracking scores, and fostering a welcoming environment are essential elements in laying a solid foundation for a thriving pool hall business.

The vast majority of pool halls offer a range of games, including the likes of pool, snooker, and darts. They will also often sell a variety of drinks and food, allowing their profits to be increased. If this sounds like a business venture that suits you and your skillset, perhaps you’d like to start a pool hall of your own.

This guide will give you all the information required to start your very own business venture in your local area.

The pool hall business model

In the UK, the pool hall business model has evolved to adapt to the changing tastes and preferences of consumers while maintaining its classic appeal. Pool halls in the UK typically aim to create a vibrant and social atmosphere, attracting both seasoned players and newcomers. Many establishments offer a variety of billiards games, such as eight-ball, nine-ball, and snooker, to cater to diverse interests.

Additionally, the pool hall experience often extends beyond the game itself, with the inclusion of a well-stocked bar serving a selection of beverages, including craft beers and cocktails, to enhance the social aspect of the venue. Some pool halls may also incorporate other forms of entertainment, such as live music, themed nights, or televised sports events, to attract a broader clientele.

In recent years, an increasing number of pool halls have embraced technological advancements to streamline operations and improve customer experiences. Online booking systems allow players to reserve tables in advance, ensuring they can enjoy their games without long wait times. Moreover, digital scorekeeping and leaderboard displays add a competitive edge to the experience, encouraging players to improve their skills and strive for the top spot.

Furthermore, to stay competitive, pool hall businesses in the UK often prioritize the quality and maintenance of their pool tables and equipment. Regularly replacing worn-out cue sticks, balls, and maintaining tables in excellent condition are essential to provide a satisfying playing experience for customers.

Create your Pool Hall business plan

A pool hall business plan outlines the strategies and steps necessary to establish and operate a successful pool hall in a specific location. Below are the key components to include in the business plan:

1. Executive Summary:
   • Briefly describe the vision, mission, and objectives of the pool hall.
   • Summarize the target market and unique selling propositions (USPs) of the business.
2. Market Analysis:
   • Conduct market research to identify the target demographic and competition in the area.
   • Analyze the demand for billiards and potential growth opportunities.
3. Business Description:
   • Provide a detailed overview of the pool hall, including its location, size, and layout.
   • Explain the type and number of pool tables to be offered, along with any additional amenities like a bar, lounge area, or entertainment options.
4. Marketing and Sales Strategies:
   • Outline marketing plans to attract customers, including online advertising, social media, and partnerships with local organizations.
   • Describe promotions, discounts, and loyalty programs to retain customers and encourage repeat business.
5. Organization and Management:
   • Define the organizational structure of the pool hall, including key personnel roles and responsibilities.
   • Highlight the skills and experience of the management team.
6. Funding and Financial Projections:
   • Detail the initial investment required to start the business, covering equipment, licenses, permits, and operational costs.
   • Present financial projections, including revenue forecasts, expense estimates, and break-even analysis.
7. Operational Plan:
   • Describe the daily operations of the pool hall, including opening hours, staffing requirements, and customer service standards.
   • Address any potential challenges and solutions related to operations.
8. Customer Experience:
   • Emphasize the importance of creating a welcoming and enjoyable atmosphere for customers.
   • Explain how excellent customer service will be ensured, including staff training and feedback systems.
9. Regulations and Licensing:
   • Identify the legal and regulatory requirements for operating a pool hall in the specific location.
   • Explain the process of obtaining necessary licenses and permits.
10. Risk Assessment:
    • Identify potential risks and challenges that could impact the business.
    • Develop risk mitigation strategies to minimize negative impacts.
11. Sustainability and Growth:
    • Outline plans for expanding the business in the future, such as opening additional locations or diversifying services.
    • Consider opportunities for eco-friendly practices and community involvement.

Remember to conduct thorough research, gather accurate data, and continuously update the business plan to reflect changes in the market and business environment. A well-crafted pool hall business plan will serve as a roadmap for success and help secure funding from potential investors or lenders.

Research your target market

Regardless of the type of business you wish to start up, researching your market and target audience is an essential first step.

Existing competition

The first thing you should do before starting your business is to find out if there is a market for it. The first step in setting up in a new market is to identify who your direct and indirect competitors are. As a snooker and pool club, you will face competition from other clubs offering similar services.

A Yellow Pages or similar business directory (printed or online) is a good way to find out how many clubs there are in your area, as is driving or walking around your neighbourhood.

Leisure and hospitality businesses will be your indirect competitors, such as:

• Pubs
• Sports clubs
• Leisure centres
• Hotels

Indirect competitors can have a significant impact on your business. For example, most people tend to go to the pub for a drink and a chat and may play pool while they are there rather than specifically looking to play pool.

There’s also the fact that lots of your more indirect competitors, particularly pubs, only have pool tables (instead of snooker tables) that are in cramped corners and not very well maintained. Nevertheless, they will all be vying for the same ‘leisure pound’ in your area, so you should consider them all.

Assessing your direct competitors

As soon as you have determined the amount of direct competition, you should take a visit to some existing snooker and pool clubs in your area to determine:

• The number of tables they have
• The games they offer (such as snooker, pool, and American pool)
• Other facilities they have, such as a bar, restaurant, etc.
• Their prices
• What are their opening hours?
• How busy they are
• What the ‘experience’ of visiting the club is like
• What types of customers they have
• How well advertised they are, including their online advertising strategy

Why will customers choose your club

Decide how you will persuade customers to choose your club over your competitors once you have identified what they offer. The following may be included:

• You may be able to park very easily near your proposed club, or it may be close to other entertainment venues, such as pubs and restaurants.
• If your restaurant offers a wide range of meals and more tables, you may be able to attract more customers. Your club can also be marketed as a venue for corporate events
• You may, for instance, try to attract more families and younger members
• You could make sure that your table or bar prices are lower than your competitors. It may be more profitable to offer ‘happy hours’ during quiet times, but remember that ‘irresponsible’ alcohol promotions are not allowed
• How long you are open for. Some clubs shut at around 11 p.m. while others stay open for 24 hours. Researching your competitors will tell you whether there is an opportunity for a club to open round-the-clock (although your competitors may not offer this option due to limited demand).

Establish your customer profile 

You may decide that you will target a predominantly male market by opening a snooker or pool club. According to government statistics:

• Snooker, pool, and billiards are played more often by men than by women
• Students are the most likely to participate – by a wide margin – of all social classes
• 16-29-year-olds are the most likely to use it

Targeting your customers

In order to attract your customers, you must identify who they are likely to be. Here are some ideas to consider:

• A poster offering reduced membership and playing rates to students at certain times of the day can be placed in colleges and universities. It might even be possible to approach university pool and snooker clubs about the possibility of using your club regularly.
• Students and other young people’s newsletters
• Advertise in your local newspaper, perhaps with a voucher entitles the holder to a couple of hours free after joining
• Establishing relationships with other businesses that will let you advertise on their premises, such as taxi companies, leisure centres, etc.
• Organise competitions and exhibition days that will hopefully attract local and national media attention
• In today’s world, most people get their information online, so having your own website advertising your establishment is particularly important.

Corporate customers and functions

It may be your goal to rent out your club to corporate customers and to people who want to host functions there. You may have the following customers if so:

• Business ventures that want to rent out a games room for a snooker or pool tournament
• Individuals who wish to host an event at your club. For birthdays, weddings, etc., you may have a separate bar area or function room that isn’t filled with snooker and pool tables in your club
• Tournament organisers who wish to hold their event at your club

Special offers and discounts

Your club can benefit from a well-planned system of discounts and special offers. As an example, you may decide to:

• Outside of peak times, offer a discounted rate
• Certain groups of people can join for free
• Discounts are available to students and pensioners at all times
• Consider running ‘happy hours’ in your bar during off-peak hours (while keeping in mind the restrictions on irresponsible alcoholic drink promotions).
• On quieter days of the week and during quieter times of the day, offer ‘meal deals’

Decide what to sell

You may also decide to sell other items besides snooker and pool to your members.

Food and drink

Providing food and drink is a good way to create an appealing environment for your members and perhaps encourage them to stay longer. Whether you sell crisps and bacon sandwiches, or a full restaurant menu, you may decide to sell a variety of snacks and meals. Additionally, you should offer a full selection of alcoholic and non-alcoholic drinks to your customers

Your members will have to decide if they will be able to consume food and drink at the games tables or if there will be a designated food and drink area. To make ordering food and drink easier, some clubs offer a ‘phone to bar’ service for ordering food and drinks at the game tables.

Snooker and pool accessories

The following products may be sold in your club’s retail outlet:

• Cues and cue cases
• Cue accessories, such as extensions, rests, replacement tips and chalk
• Tables, balls, etc. You may decide to stock a range of tables suitable for domestic use
• Clothing

Games and services offered

If your club offers a variety of games and services, you are more likely to attract members (and, more importantly, retain them), although your capacity and finances may limit your ability to offer this kind of variety. You may offer the following games:

• Snooker
• Pool
• American pool
• Billiards
• Table football
• Darts
• Gaming machines
• Video games
• Alternative amusement games such as air hockey

Your services should be tailored to meet the needs of your members by periodically monitoring which games they enjoy the most and least. You might start out with ten snooker tables and three pool tables but realise that two of the snooker tables are always empty while there are always people waiting for a pool table. It might be a better idea to rent tables rather than buy them for the first few months after opening if you are uncertain about the best mix of games.

Estimating income

Membership fees (if you charge them), game fees (if you charge them), receipts from the bar, restaurant, and other services like gaming machines and table football will all contribute to your income.

You can calculate the maximum income you can achieve for certain elements of your income. Here is a breakdown of the membership income and the hourly income from games played:

• Fees associated with membership. Your club, for example, may be able to handle 1000 members at a cost of £30 per year. In such a case, the maximum annual membership fee would be £30,000
• Your table income. A table costing £6.50 per hour will result in a maximum hourly income of £97.50 if you have 15 tables. Your maximum annual income from your tables will be £425,880 if you are open 12 hours a day, 7 days a week (£97.50 x 12 x 7 for one week, then x 52 for one year).

Please note that all figures are for illustrative purposes only and your results may vary significantly.

In order to make sure the maximums are more accurate; you must adjust them after you calculate them. The following factors should be considered:

• In the first year of operation when you are building up your club’s reputation, you may not fill your membership
• Some people may be eligible for discounted or free memberships
• You won’t be busy all day, every day. Inevitably, there will be quiet periods during the day when tables are not in use. Weekends, for instance, are usually busier than other days, as well.

The following other components of your income cannot be calculated and must be estimated:

• The income from tables that charge per game rather than per hour
• Other games, such as table football, can generate income
• Receipts from the bar and restaurant. The time of day will also have a significant impact on estimating this income, since not every player who comes to play pool or snooker will also have a drink or a meal at the bar.
• A function such as an office Christmas party at your centre is in high demand
• How many guests or temporary members you can expect
• Income from gaming machines. Don’t forget that if you’re intending to enter a profit share with a gaming machine supplier, you’ll only get a share of the net takings (usually 50%)

After a few months of trading, you will likely need to adjust your figures.

Pricing policy

You should consider how much your games and services will cost. If you want to avoid pricing yourself out of the market, check out what your competitors charge. Here are some of the prices you’ll have to choose from:

• You will need to decide how much membership will cost if you decide to run a member’s club (as some pool and snooker centres do). The typical annual fee is around £30, and some groups, such as students and young people, may be eligible for discounts
• Table rates. Most pool and snooker clubs charge per hour for tables, and many operate a sliding scale based on the time of day (the quieter times are cheaper). An hourly rate of £6 to £7 is typical. In addition, some tables – such as English pool – may be charged per game
• Bar prices. You may decide to set your prices so that they undercut the pubs in your area in order to attract more customers to your club.
• Snacks and meal prices. It may take a few attempts to determine how much your members are willing to pay for the meals and snacks you offer. You will need to consider the overhead costs of making the food, such as the cost of ingredients, wages, and heat and light, when setting food prices.
• Function room hire. On weekends, it might cost around £150 a night, and on weekdays, about £80. Find out what your local competitors are charging by checking out their websites
• Competition entry. There may be a need to charge an entry fee for regular competitions in your club. Around £5.00 is a typical charge
• Guest entry or temporary membership. This will likely be roughly £2 to £3 per person

Get insurance

In the UK, insurance is an essential aspect of running a pool hall business as it offers vital protection against potential risks and liabilities. Given the physical and social nature of the pool hall environment, unforeseen accidents and incidents can occur, making insurance coverage crucial for safeguarding the business’s assets and reputation.

Types of Insurance Needed:

1. Public Liability Insurance: This type of insurance is fundamental for pool halls as it covers legal expenses and compensation claims in case a customer or visitor suffers bodily injury or property damage while on the premises.
2. Commercial Property Insurance: With this insurance, pool hall owners can protect their physical assets, including the building, pool tables, furniture, and other equipment, from damages caused by fire, theft, vandalism, or natural disasters.
3. Employers’ Liability Insurance: As an employer, it is a legal requirement in the UK to have Employers’ Liability Insurance. This coverage protects the pool hall owner against claims made by employees who suffer injury or illness while working for the business.

Examples of Insurance Companies:

1. AXA Insurance: AXA offers comprehensive Business Insurance packages tailored to the specific needs of pool hall businesses in the UK. Their policies typically include Public Liability, Property Insurance, and additional coverages to suit the unique risks in the industry.
2. Allianz Insurance: Allianz provides a range of commercial insurance solutions, including tailored packages for leisure and hospitality businesses like pool halls. Their policies can encompass Public Liability, Property Insurance, and other relevant coverages.
3. Aviva: Aviva offers specialized insurance solutions for small and medium-sized businesses, including pool halls. Their packages often include Public Liability and Property Insurance, with the option to add additional coverages as needed.

Having the right insurance coverage is vital for pool halls in the UK to protect against potential risks and liabilities that may arise. By securing appropriate insurance from reputable providers, pool hall owners can ensure the longevity and success of their businesses while providing a safe and enjoyable environment for their customers.

Rising finance for your start-up

Raising finance for your pool hall is a crucial step in turning your entrepreneurial vision into reality. Fortunately, there are various funding options available to support your venture.

Different types of pool types of pool hall finance include:

1. Business Loan: Approach banks or financial institutions for a lump sum to fund your pool hall. Repay the loan with fixed interest over time, retaining full ownership and control.

2. Merchant Cash Advance: Receive upfront cash from a provider and repay through a percentage of future credit card sales. Ideal for businesses with fluctuating revenue.

3. Asset Finance: Acquire essential pool hall equipment without a hefty upfront payment. Choose between lease agreements or hire purchase, depending on ownership preferences.

4. Finance for Buying a Business: Secure capital to purchase an existing pool hall. Repayment terms tailored to cash flow, allowing a smooth transition into business ownership. Conduct due diligence before acquisition.

Buy an existing business