There are many opportunities that are disguised as challenges. One of such areas is the absence of public halls that can be used at affordable prices by residents of several communities. In the developed world, there is the availability of public halls that can be used to host events by residents of those communities.
There are also several private events centres that can be used to host events. These facilities are conspicuously missing in many communities in Nigeria but thankfully, some real estate investors are already investing in building, operating and maintaining such facilities.
The basis for this real estate investment is quite strong. Man is a social being with physical, emotional and material needs. Our need for social interaction and affirmation will continue to spur the growth of sectors that address this critical human need. The African culture is also communal and relational in nature. We love to celebrate and console together. In addition to all these, our population is growing rapidly and the cost of real estate is not getting cheaper. Already, we have a deficit when we consider our current population and the available facilities. Those who invest in this sector are going to make regular money from such investment.
The first critical factor to consider is location. In real estate, location is essential to the success and profitability of any investment. Although there are event centres that are built on small parcels of land, this is not ideal and will certainly restrict the attraction of such facility. Visibility is also an important factor to consider when evaluating a location. A public facility such as an event centre must have adequate space for parking and other supporting structures. It is important to consider the issue of accessibility by road and public transport. The location should be within the catchment area, which your business research has shown to have a need for such facility. It is important to ensure that you can use the location for an event centre.
Event centre come in different shapes and sizes. Initially, most event centres were built with solid bricks. They were generally warehouses that were reconstructed or purposely built event centres. But the current trend seems to be the use of special event tents that are more fanciful and cheaper to erect than brick and mortar structures. These tents are imported and come pre-packed. The determining factors are the size of the structure and the additional things they come with. The design of some tents allow for the effective use of air conditioners inside the tent. The size of the land must accommodate the tent and still leave sufficient spaces for the construction of permanent structures like restrooms, parking, security and decoration.
One of the major attractions of event centres is the variety of services that they provide. Many people like the concept of a one-stop shop where their entire primary needs can be met. Chairs, tables, stands and some other attractions are often handled by the managers of event centres. Some event centres go an extra mile to provide for children and young people. A pop corn stand could be an amazing income generator for the owners of the centre.
Determining the appropriate rental price for the use of the hall is not as simple as it seems. There are many factors that you need to consider before fixing a price. One of the issues to consider is the neighbourhood and the amount charged by nearby event centres. Another factor is the value that you are providing to the users. If your facility has a distinct and admirable look you can ask for a higher price. A good support structure such as customer service, event centre manager, billboard adverts and directional signs could push your cost up. Don’t be too low and don’t be too high. Wisdom is in finding the appropriate middle ground to stand. Your price should be determined by the market that you serve.
Maintenance is a major issue for most event centres. There is a need for a facility manager with basic support workers to ensure that the property is neat. Many of the event centres that are enjoying good patronage are backed by good marketing, good customer service and proper maintenance processes. In some areas, there is intense competition because there seems to be a cluster of event centres. Although affordability is a factor, if you select your location carefully and have good facility, you can enjoy all-year-round booking. This investment has good cash flow returns and reduced management issues due to the short lease term which is less than a day.