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- 30+ Business Plan Pages
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Key Takeaways
- The complete Pool Hall business plan requires 7 practical steps to detail the $445,000 CAPEX and establish a 3-year financial forecast for investors.
- Success is fundamentally driven by maximizing high-margin revenue streams, balancing the $28/hour table rate against the volume of high-margin beverage sales.
- The financial model projects an aggressive 1-month breakeven target, underpinned by $12 million in Year 1 revenue and an initial EBITDA of $300,000.
- Operational planning must account for significant initial staffing levels (75 FTEs) while strategically managing the 45% Food COGS against planned moderate price increases.
Step 1 : Define the Core Offering and Target Market
Define Market Need
You must nail down exactly what you sell and who pays for it before you start building. This step validates the core premise. If the local market doesn't need a modern, upscale social hub, the entire financial model collapses quickly. That’s the reality.
Confirming demand means proving people will pay your price point consistently. We need hard numbers showing capacity utilization aligns with revenue targets. If the local competitive landscape is too crowded with cheap options, your premium positioning needs serious backing.
Validate Demand
The initial revenue goal hinges on selling 25,000 table hours annually at $28 per hour. Here’s the quick math: that means booking about 68.5 hours every single day, seven days a week. This confirms the operational density required from the start.
Your concept directly targets young professionals aged 25-45 who find existing pool halls outdated or intimidating. The upscale environment, combined with tech-integrated reservations, justifies that $28 rate against local competitors. If you can't reliably hit 68 hours daily, the revenue projection is fiction.
Step 2 : Calculate Initial Capital Expenditure (CAPEX)
Asset Acquisition Sum
The initial capital outlay sets the physical foundation for the entire business model. This $445,000 covers the tangible assets that drive primary revenue, namely the billiard tables, the bar/kitchen infrastructure, and necessary IT systems. If you skimp here, you defintely compromise the upscale atmosphere promised to young professionals. This spend must be precise because it locks in your operating capacity before the first dollar of revenue comes in.
Disbursement Mapping
You must create a detailed disbursement schedule tied directly to vendor timelines for Q1 through Q3 2026. The $445,000 total is not spent at once; it’s front-loaded for construction and equipment delivery. Clearly document which funding source—equity injection or debt—covers the specific component, like the billiard tables versus the bar/kitchen buildout. This mapping proves you have the cash ready when the contractor needs payment.
Step 3 : Establish Fixed and Variable Cost Structure
Pinpoint Monthly Overhead
You need to know your absolute minimum burn rate before you make a single dollar. For this upscale lounge, the fixed overhead—things like the lease, utilities, and insurance—is set at $54,741 per month. This is your baseline cost of keeping the lights on and the tables ready, regardless of how many people show up in January. If you don't hit revenue targets, this number eats cash fast.
This fixed cost structure demands high utilization to cover the base. Since you are planning for premium table rentals ($28/hour) and a full F&B program, you must ensure the $54,741 is covered by your minimum daily bookings. It's a tough nut to crack early on, defintely.
Model Variable Levers
Variable costs rise and fall with sales volume, so they directly impact your contribution margin. You must model these accurately. Food COGS is set at 45%, and beverages at 40%. Plus, every transaction incurs a 25% processing fee, which is a significant variable drag on revenue.
To find your true blended variable rate, you need revenue mix data. However, if we assume a 50/50 split between F&B sales, the COGS alone is roughly 42.5%. Add the 25% processing fee on top of that gross margin, and your total variable cost could easily hit 60% or higher, depending on how much revenue comes from table rentals versus F&B sales.
Step 4 : Forecast Revenue Streams and Pricing
Y1 Revenue Target
Forecasting the $12 million Year 1 revenue shows the scale needed for operations. This projection hinges on four core income sources working together, not just table rentals alone. We need to confirm the volume assumptions driving this target across all revenue buckets. If table hours are the anchor, the high-margin ancillary sales must close the gap. Honestly, that $12M number sets the baseline for staffing and inventory planning. We defintely need strong attach rates here.
Hitting the $12M Mark
To reach $12M, you need volume at specific price points. Table hours are priced at $28 per hour, which is the foundation. But the real margin lift comes from attach rates on food (avg $18) and drinks (avg $10). Events, priced at $35 per entry, offer high contribution if managed efficiently. What this estimate hides is the utilization rate required to hit those hourly targets.
Step 5 : Structure the Management and Operations Team
Team Sizing
Defining the team structure locks in your largest variable operating cost: payroll. Scaling to 75 Full-Time Equivalents (FTE) requires careful allocation across front-of-house service, kitchen operations, and management oversight for the projected $12 million Year 1 revenue. This headcount directly impacts your ability to service peak demand periods efficiently. If onboarding takes 14+ days, churn risk rises.
Staffing Key Roles
Pinpoint salaries for key leadership defintely. The General Manager role is budgeted at $75,000 annually, setting the tone for operational discipline. Also, specialized roles like the Event Coordinator, budgeted at 0.5 FTE, ensure league and tournament revenue streams are managed without overstaffing year-round. This structure supports the premium service model.
Step 6 : Determine Breakeven Point and Cash Needs
Breakeven Verification
Hitting breakeven in just 1 month is highly aggressive for a venue opening. This target forces immediate, high utilization rates right out of the gate. If you miss this, the cash burn accelerates quickly. We must defintely verify this timeline against the initial $445,000 capital expenditure needed for buildout and equipment purchases spread across Q1 to Q3 2026. This calculation sets the floor for your funding needs.
This aggressive timeline assumes high Average Daily Customers (ADC) and strong initial attachment rates on food and beverage sales immediately following the soft launch. If table utilization lags, the runway shortens, making the cash requirement critical. You need hard data proving that first month’s volume.
Cash Runway Calculation
The minimum cash requirement needed by June 2026 is $670,000. This covers the initial $445,000 in capital expenses (CAPEX) plus the projected operating losses until profitability. Your fixed overhead alone is $54,741 monthly.
If breakeven takes 3 months instead of 1, you need enough cash to cover three cycles of that fixed cost plus the initial outlay. That $670k figure is your non-negotiable safety net to survive the pre-profit phase. This amount must be secured before Q2 2026 starts.
Step 7 : Develop 5-Year Growth and Risk Mitigation Plan
EBITDA Path Mapping
Mapping growth to $895,000 EBITDA by 2030 requires precise control over operational efficiency. The primary challenge is balancing high table utilization with maximizing spend per visit. If utilization dips below projected levels, achieving this profitability target becomes impossible without aggressive average check size (ACS) increases. This plan forces us to prioritize revenue density over simple volume.
Driving Check Size
To boost the ACS, aggressively push the $18 food and $10 drink sales alongside table time. If utilization falls short of the 25,000 annual hours needed, you must increase the blended ACS by 15% just to offset the shortfall. We defintely need to manage table utilization rates carefully, maybe through dynamic pricing for peak slots to manage demand.
Pool Hall Investment Pitch Deck
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Frequently Asked Questions
Most founders can complete a first draft in 2-4 weeks, producing 10-15 pages with a 5-year financial forecast (2026-2030), once the core $445,000 CAPEX is finalized