Business Set-Up Advice...

hammered

Hi,

Myself and a friend have decided to attempt to start our own business... We are not aiming to give up our full-time jobs, but see it as a small venture in the hope to making a small profit. I'm looking for advice in what way to go about it.

Basically, I want to approach pubs, hostels and hotels offering them the opportunity to put coin operated machines on their premises - including pool tables, jukeboxes and hopefully gaming machines (subject to license) and splitting any revenue generated 50:50. I realise this is not a revolutionary idea, but I'm in my mid-twenties and I have to start somewhere! We would supply all equipment etc. free of charge, thus costing the pub or hotel absolutely nothing.

I am in the process of getting a website and Facebook page up and running, and have brochures ordered to bring into prospective clients to show them what service we wish to offer.

Do I have to register as a limited company to pursue this? There is 2 people involved so obviously does not qualify as a sole trader. Can I just register a business name for now?

Is it a good idea to 'test the water' and approach premises to see if there is any potential interest before any real financial outlay?

I realise the licensing laws with regard to gaming machines is very vague, and cannot find any information on the Revenue Commissions website. Does anybody have any information with prices etc.?

Any information is appreciated, and I will be able to expand if anybody has any questions

bigneacy

hammered wrote: »

Hi,

Myself and a friend have decided to attempt to start our own business... We are not aiming to give up our full-time jobs, but see it as a small venture in the hope to making a small profit. I'm looking for advice in what way to go about it.

Basically, I want to approach pubs, hostels and hotels offering them the opportunity to put coin operated machines on their premises - including pool tables, jukeboxes and hopefully gaming machines (subject to license) and splitting any revenue generated 50:50. I realise this is not a revolutionary idea, but I'm in my mid-twenties and I have to start somewhere! We would supply all equipment etc. free of charge, thus costing the pub or hotel absolutely nothing.

I am in the process of getting a website and Facebook page up and running, and have brochures ordered to bring into prospective clients to show them what service we wish to offer.

Do I have to register as a limited company to pursue this? There is 2 people involved so obviously does not qualify as a sole trader. Can I just register a business name for now?

Is it a good idea to 'test the water' and approach premises to see if there is any potential interest before any real financial outlay?

I realise the licensing laws with regard to gaming machines is very vague, and cannot find any information on the Revenue Commissions website. Does anybody have any information with prices etc.?

Any information is appreciated, and I will be able to expand if anybody has any questions

Your outlay is already going to be quite big in buying these gaming/leisure machines so another €100 isn't going to break the bank, really.

If you are getting some good quality brochures to present a professional image, then a proper business set up is only to be expected from a professional stand point.

No self respecting business person is going to feel comfortable getting into a long term deal with hammered and his mate - Hammered Ltd. would be much better.

hammered

I fully agree with the above comment. We are still very much in the planning and development stages.

I do not own any of the equipment yet, as I am trying to guage what level of interest actually exists for our services. But yes, if it is ever going to be a success, I agree we will have to register the company. I just wasn't sure when to actually do it - now or when we are actually operating.

Keep the opinions coming!

dbran

Hi

I would form a unlimited company as I would always advise against partnerships. Too often you hear of one partner running up debts in the partnership that the other has to pay and assumes unlimited liability for.

You should indeed test the water first, seeing how easy it is to sell the service to the target customers and if there are any pitfall you need to consider before launching yourselves.

Presumably you will not want to be tied into having to buy the equipment and rather you would try to come to some short term leasing arrangement with the manufacturer. The shorter the better! The last thing you want is to be stuck with machines that are sitting idle.

Hope this helps.

dbran

hammered

I got quotes for the various prices for individual equipment, but I am not purchasing anything before I actually have a premises to put it in to!

Thanks for the leasing suggestion, I will look into how viable it is!

I personally think it is a fairly limited risk, as I would potentially only be left with a coin operated pool table, for instance, which I would sell on if the worst case scenario presents itself.

I am at a stage in life where I can either try an start my own money-earner, or in ten years be stuck in the same job wishing I had tried it. Speculate to accumulate an' all that!

RATM

OP what part of of the country are you in? Here in Dublin there are very very few pubs with pool tables and there is a reason for that- they can attract the 'wrong crowd'. Also in a busy pub they take up valuable customer space (its not just the table its the space needed around it to play). It's far more profitable for the publican to have twenty people drinking in those 12sqm than to have two people drinking and paying €2 for each game of pool. It is probably different in more rural areas where space isn't at such a premium.

Gaming machines are a better idea IMO but you need to tread carefully here. Gambling in pubs is against the law AFAIK. There is a grey area, 'games of skill' that seems to exist, i.e. sometimes you see a Who Wants to be a Millionaire machine in a pub. But a one arm bandit that pays out winnings in a pub may well attract the attention of the local superintendent. You need legal advice on this.

hammered

RATM, thanks for the post. I am indeed based in Dublin, but I intend to focus my efforts on more suburban pubs, which will have a local clientele and hopefully will not attract undesirables that aren't already drinking there!

My own local pub, for example, does have the space for a pool table, and very rarely needs the required space for people standing and drinking. Maybe a few years ago, when space was at a premium and pubs were full it wasn't viable, but now I believe a pool table will only enhance a pub's appeal as a source of entertainment when a group are deciding where to go for a few quiet pints. But I will soon find out!

I am wary of the gaming machines myself. As far as I know, all machines need to be licensed by the Revenue Commission but I am unsure of this. If anybody can clear this up, that would be great...

srsly78

The law on gaming machines is nothing to do with "games of skill". Games that are in an area accessible by under 18s must be "for amusement only", it's ok to get back what you put in, but not to win more.

Note all (electronic) games, whether for profit or otherwise must have a license from customs&excise, this should be prominently displayed on the machine. Gambling games allowing profit must be in a special area protected from access by kids, over 18s only. Not sure if you need licence for pool table, but arcade games and poker machines definitely need them.

OP, you need to research your market and competition. The established players offer a better deal than you so I don't see how you would take business off them. The major irish reseller and servicer of pool tables is also the dominant player in the rental market.

Disclaimer: Info was accurate in the 90s, dunno if things have changed.

Aside: The special licences put many operators out of business when they came in during the 90s. This was a major factor in why you don't see arcade games around anymore (playstation etc is a bigger factor tho).

ronaneire

What sort of plan have you put together? In the sense of either purchasing the equipment or you leasing it from the suppliers? How much revenue would you think these can make when you say its a 50:50 split between you and the publican.

Also have you checked your competitors? Do you know what they are charging for the lease of their equipment?

Can't imagine the pub trade to be doing a roaring trade at this very minute.

However I wish all the luck with it, nothing ventured nothing gained.