If running the average business is difficult, then running a pub in particular has to be at the tougher end of the scale.
Danny Farseer ran one shortly after his A-Levels, aged just 18, and said he “quickly picked up the business-running side of things”. What’s more, it was his parents’ pub and he had the remarkable fortitude to run it after they passed away.
It was a baptism of fire for the young entrepreneur, who has since set up a nightclub in conjunction with a major operator and bought another pub with a view to converting it into a nightclub too.
He ran the pub for just over a year and then, in the summer of 2006, felt confident enough to hand over the reins to other staff and set his sights on the next project.
“I spent two weeks in Plymouth and bought a large, desolate building there with an idea to create a giant nightclub,” says Danny. “The building itself cost only £321k but the refurbishment was going to cost around £700k.
Definite market
“To get the funding I called some possible investors. One company agreed and spent £6m on investing with a 75% stake in the project.
To get the funding I called some possible investors. One company agreed and spent £6m on investing with a 75% stake in the project
“The company used my ideas and designs with their requirements. The turnover was £5.5m last year and I get 25% of that so it’s quite a success if you ask me.”
Buoyed by the success of the Plymouth venture Danny decided to open a second nightclub in his hometown, Castleford.
“There were no other nightclubs in the town but a definite market for them,” he says. Danny gauged the opinions of locals before proceeding and found there was enough enthusiasm to warrant going ahead.
Busy with a number of projects already, Danny decided to minimise the effort required by buying an up-and-running business, albeit a pub rather than a nightclub. However, the pub could be converted without too much aggravation.
“Much of the bar layout, for example, is already there, which makes it a lot easier to convert,” he explains.
Danny found the business on BusinessesForSale.com, which he found to be “very effective”. The buying process went smoothly, with Danny’s first bid – £10k over the property value – being accepted.
The major conversion work is yet to begin but strides have been made towards transforming the venue into a nightclub.
“Plans are being put forward to Wakefield Council for planning permission on the pub, which is a listed building.
“A late licence has been given and the layout has been changed furniture-wise to allow a more clubbing feel. But it still looks like a pub; it was only bought four to six months ago.
Is running a club harder than running a pub? Danny’s answer is emphatic.
“Yes! There are so many problems you don't tend to face with a pub: drugs, security, fights, DJ costs, promotions… At first it was very stressful, with an escalating drug problem threatening my licence.
Danny eventually discovered an enemy within.
“It turned out to be the bouncers, so I used a different firm.”
Danny is “on call 24-7”, he says. “If something goes wrong which requires a bar manager to escalate an incident or seek advice, I’ll be the one getting called. If investors are having certain problems I may be called, it's all dependant on the problem.”
Danny, who is still only 21 years old, hadn’t planned to become an entrepreneur.
“I always wanted to be a policeman,” he admits. “This is kind of something that just happened.”
So how does one so young get so far in life so quickly?
“I guess I’ve been very lucky: I’ve made decisions which could have bankrupted me but they paid off.
“A lot of the credit has to be given to my investors, close companies which have supported my ideas over the last couple of years.
