How to open a bar

Author: Alice Brown
Date Of Creation: 25 May 2021
Update Date: 1 July 2024
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How to write a business plan for a bar & how to open a bar
Video: How to write a business plan for a bar & how to open a bar

Content

Opening your own bar can be a very risky business. But he who does not take risks does not drink champagne! To be successful, you will need to dive into the business with your head and be organized. Create a budget and be sure to stick to it. Prepare for the worst and work fast. Remember, the most important thing is sociability and the ability to win over the client. If you are thinking of opening a bar, here are a few steps to help you.

Steps

Method 1 of 4: Method: Getting Started

  1. 1 You need to know that there is a lot of competition in this business. You will be competing not only with other bars in the area, but also with entertainment and retail establishments. It used to be easier - if someone wanted a drink, he went to the bar. Now everything is different, everyone can easily buy a drink in a store or kiosk. So this business is not at all sweet. By some estimates, 3 out of 4 bars go broke in the first year.
  2. 2 Be prepared for a very busy schedule. Especially in the first year of operation, when the bar owners have to manage the staff and close at 4-5 am and return at 11 am.This can affect your relationship with your family, so talk to your loved ones about it.
  3. 3 You will need a license to trade in alcoholic beverages. The existence of any bar depends on the amount of booze available. If you do not have a license and cannot sell alcohol to customers, soon the business will be covered with a copper basin.
    • Licenses can be very expensive, although this is not always the case, and, of course, it all depends on the place, but you still have to pay for the privilege of selling alcohol.
    • After obtaining a license to sell alcoholic beverages, be sure to obtain all the necessary permits and licenses.
  4. 4 Create a detailed business plan. You need to know the demographics of the area, determine who your bar is for. Having a business plan will make it easier for you to get financing. Banks are reluctant to fund such activities, and the Small Business Administration will not help you.
    • If you don't drink too much in your area, consider offering some food with the booze. This can be useful in areas where customers do not enter the bar right after work or where customers leave quite early.
    • Don't fall into the trap of not having enough working capital. This is the reason why most of the bars go down the pipe. Ideally, you need to have enough money in your bank account to cover all expenses for the year in advance. It is difficult, but before you dive headlong into the business, you absolutely need enough money to cover 4-6 months of rent and all expenses.

Method 2 of 4: Method: Choosing a Location and Design

  1. 1 Look for a good place. Do not rent a space where a bar used to be and then burned out. There was definitely a reason for that. You need to open a bar in the right area. Preferably, in an area with a lot of young people, because, oddly enough, they like to hang out in bars. The more bars and clubs are nearby, the fiercer the competition will be.
    • When choosing a place for your future bar, remember the following:
      • Access to the highway is vital to attract passers-by.
      • If you're in an area where people don't walk often, consider parking!
      • The bar must be clearly visible from the street to attract visitors.
  2. 2 In general, choose a location that is closer to where clients work, rather than their homes. It's no secret that a tired and worn-out client wants to relax a little after a hard day at work, especially during the work week. It is more profitable to be not on the outskirts, but in the center of the business hustle and bustle.
  3. 3 Choose a bar decoration. It doesn't have to be defiantly aggressive. Discreetness can work, too. But it's better to immediately understand what kind of bar it is. So what will it be?
    • Bar next door. Here hard workers gather on Wednesdays, drink beer and maybe play billiards. This type of bar is the most common, ideal for small gatherings.
    • Sports bar. This is where fans gather to watch games on Sundays. These bars should offer food and television screens should be visible from everywhere.
    • Beer pub. Beer lovers come here to enjoy their favorite drink. You will probably need to have barrels of good beer ready, some of these bars also brew their own beer. Beer bars brewing their own popular beer can capitalize on their produce in several ways.
    • Thematic bars. Wine and cocktail bars fall into this category. Themed bars are either themed (pirate theme) or their own themed alcoholic drink (rum). Also, one and the other can be combined to create a stunning bar with a pirate-rum theme.
  4. 4 If you want to have live music, you need to know which client you are trying to attract. There are rock bars, jazz bars, blues bars, punk bars, and so on. Attracting a clientele that would fit into the concept is a plus, but not a necessity.
    • In a quiet wine bar, you will find yourself in the place of jazz bands or a piano.
    • Bars in the neighborhood will benefit by bringing in a local rock band.
    • Well, the club will be successful if dance music is included in the repertoire.

Method 3 of 4: Method: Finalizing the Basics

  1. 1 Give the bar a name. It's harder than you might think, and just as important as other aspects of the business. The name serves as an advertisement for the bar, a reflection of the whole concept. The name must necessarily appeal to customers, convey the concept to them and sound intriguing.
    • The name must be consistent with the concept. If it's a stylish wine bar, you probably wouldn't call it Petrovich's. People will not understand this.
    • Don't be afraid to explore the possibilities. Think carefully about the clientele you want to attract and what people will expect when they hear the name. Come up with names until you find three that you really like. Then choose one of them.
  2. 2 Create a menu. If you plan on serving food and quality cocktails, invest in good ingredients, remember, fresh is always better. Make your bar menu fit with the concept, if any. A Mexican-themed bar without tequila, crown and margaritas - hack.
    • Consider a special menu for discount hours. This will not bring much income, but it will attract clientele, and some clients will be late even after the end of the discount hours.
  3. 3 Contract a company that provides coin machines. Billiard tables, dart boards, some kind of slot machines - all this gives people the opportunity to have fun. Profit is usually split 50 to 50, maintenance is free.

Method 4 of 4: Method: Preparing to Launch

  1. 1 Before concluding a lease, bring the city inspectors to look at the object, get the owner to fix everything. Then you will be glad that you did it. Bring also the sanitary inspection, let them also look and issue a permit.
  2. 2 Contract friends to do electrical, plumbing, sound, and remodeling jobs. In exchange for helping them, offer them lifetime discounts on drinks. They are your friends, they will come themselves and bring their friends. Rumor is the backbone of the bar business.
  3. 3 Advertise a big discovery. Set aside money for marketing and advertising. Participate in social events, send emails and use social media. Opening with a lot of fanfare will help to get people talking about your bar, which will attract customers.
  4. 4 Get your promo products. Make arrangements with local beer and spirits sellers, they will provide you with cool stuff. Everyone loves to get something for free, even if it's a cheap T-shirt.
  5. 5 Make yourself visible. This is especially important at the beginning: work shifts in the kitchen, at the bar, in the hall. You need to carefully monitor everything and master everything. In addition, customers like to see the owner of the establishment.

Tips

  • Watch out for bartenders and waitresses. Make sure they don't stick their hand in your pocket and trade free drinks for tips. By the way, they won't earn a good tip at more modest tables.
  • Don't drink at work. Get too carried away and something will go unnoticed.
  • Find out who the owner of the property is and how he does business. If people say, "No, he's nothing, he's just lazy," don't sign a lease. He just squeezes money out of the building and won't fix anything. It will cost a lot of money for your customers, business and investments.
  • Don't mix business and personal assets.
  • Never have a relationship with your waitresses. It will cost you dearly.

Warnings

  • Good customers are hard to attract and very easy to lose. It is important to be able to save them.
  • You need to know everything about business and have experience.
  • Chances are, you won't earn as much as you intended, at least not at first.
  • The good years don't help build a business, but the bad ones can ruin you.