It wasn't long before Danny graduated
to running nightclubs
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.
“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.
Innovation the key
But it can’t be all good luck; the companies must have seen certain qualities to put so much trust – and money – into such a young man.
“A lot of my success is based on ideas and knowing what an area needs. None of my clubs are the same because no area is the same.”
Danny, who owns four clubs outright and has stakes in 24 others, believes innovation is the key to getting ahead in the nightclub industry.
He has big ideas for a building in Leeds called the Corn Exchange, a Victorian building containing shops, restaurants and bars.
“The building has been run at a loss for the last two years by the company which owns the building.
“Two years ago the stores inside this building were targeted mainly at the alternative crowd outside,” he says, in reference to the youths which use the steps outside as a hang-out. “The company decided to increase rent on the stores and force them out, as well as attempt to use antisocial behaviour laws to prosecute the crowd outside.
“This failed. The police were condemned for arresting teenagers who were hanging out in the city centre without causing any trouble, and while the stores moved out the crowd stayed like they always had.”
The owners of the Corn Exchange have replaced outgoing traders with more upmarket stores, a move Danny thinks is doomed to failure. Now he is trying to buy the building, so far to no avail.
“The problem is the building is in an area where there are stores selling gothic clothing, tattoos and alternative items. As there is no way to move the crowd I have decided that what is needed is something in the day for the groups outside to benefit from.
“Inside I’d open the country’s largest nightclub. This new idea has attracted quite a lot of interest as there’s a lot of criticism over how the corn exchange is run at the moment.”
Danny, who is already planning how daytime traders and a nightclub might accommodate one another, is unequivocal about the importance of planning in business.
“Without planning, nothing will work out. You need to plan every little detail, not only thinking why something will work, but also why certain things won't work, to smooth out any flaws in the design.
“Once the planning is complete, you’re on your way.”
