Industry sector: Leisure

Pool hall: Estimating income

Your annual income will be made up of a combination of membership fees (if you charge them), charges for games played, receipts from the bar and restaurant and any other service, such as gaming machines, table football and so on.

There are certain elements of your income for which you can work out the maximum that could be achieved. These are the income from membership and the income from games played on an hourly basis, as is shown below:

  • membership fees. For example, you may decide that your club can cope with a maximum of 1000 members and that membership will cost £30 per year. If so, the total annual maximum from membership fees would be £30,000
  • income from your tables. For example, if you have 15 tables that each cost £6.50 per hour then the maximum hourly income would be 15 x £6.50 = £97.50. If you are open for 12 hours a day, 7 days a week then you will have a maximum annual income from your tables of £425,880 (£97.50 x 12 x 7 for one week then x 52 to find the annual)

(All figures included for illustrative purposes only - your own results may vary significantly)

Once you have calculated the possible maximums, you will have to adjust them so that they more accurately reflect what you are likely to achieve. Factors to take into account include:

  • you may not fill your membership, particularly in the first year of trading when you're building up your club's reputation
  • you may offer discounted or free membership to some people
  • you will not be busy all day, every day. There will inevitably be quiet periods during the day when tables are not being used. Similarly, you will find that some days are busier than others - weekends, for example

The other elements of your income for which it is not possible to calculate a maximum possible figure and for which you will have to make an estimate will include:

  • income from tables that are charged on a per game rather than per hour basis
  • income from other games, such as table football
  • bar and restaurant receipts. When estimating the level of this income, remember that not everyone that comes to play snooker or pool will have a drink from the bar or a meal from the restaurant - the time of day will have a significant effect on this as well
  • the level of demand from people wanting to hire your centre for a function such as an office Christmas party
  • how many guests or temporary members you can expect
  • income from gaming machines. Don't forget that if you're intending to enter into a profit share with a gaming machine supplier, you'll only get a share of the net takings (usually 50%)

It is likely that you will need to adjust your figures once you have been trading for a few months.