The only thing I disagree with there is food being the huge markup. Food is a very tight profit margin compared to alcohol. Alcohol is the massive markup. An 8 dollar bottle of beam pays for itself in 2 drinks with 20ish more to pour. That said, you're right about a music venue in Starkville having to have a consistent cash flow in between these shows, especially the summer.
The big music act scene is hard to do. The bars w/good music setups in Jackson, like Hal & Mals, barely even do big shoes anymore. The only place in the metro I can think of that is consistently doing it is duling hall. If I put myself in a bar owner shoes I get it. I can get a local guy or Dj for cheap, do my normal $5 cover and make my money of the booze with little overheard. As you said, it will take someone with money from the jump.