How to Start and Run a Successful Bar

How to open, run, and manage a successful bar

Difficulty: Challenging

Instructions

Things You'll Need:

• money, building, "owned or leased" Liquor license, permits "based on state" Note: Some states issue licenses' based on population, this means you will have to buy from a private owner and the price c

1. First, you will need to call your local Alcohol and Tobacco Commission, or the Alcohol Beverage Commission. Find out what licenses, permits, etc. that you will need, and their availability. Do not ask about a specific area ask about the state you live in. Chances are, you will have to speak to everybody and their brother, because different representatives are assigned to different counties.

2. Location is everything! There are several things to consider when you think about "location". Ask yourself these questions: Can I Afford this area I want to be in? What kind of people are in this area? Is there a liquor license available? What is my competition? Are you going to "buy" or "lease" a building? Am I going to buy an existing bar? If so what are my financing options? Will I buy on contract? Do police plague the bars in this area?
   When you considered your competition, ask yourself: What kind of entertainment are they offering? What's bringing people in? Can I compete? Remember, the police can destroy your business. If you are in a area where the police have nothing better to do than sit somewhere near your bar, waiting to pull people over, your business will soon diminish. Who wants to go to a bar when they know their going to go to jail, as soon as they leave.

3. After you determine step two, we are now ready to move on to step three. If you are going to buy on contract, that is fine, just beware. There are some things to consider when buying on contract. Just let me tell you, that I knew someone who made a living selling bars on contract. Yes, you heard me. He would buy a bar and have all the people he knew come in. Then, people in the area wanted to come in to visit the "new" bar. He would advertise the bar for sale. Potential buyers would come in to see if the bar was "busy". Of course, it was, and the buyer couldn't wait to have a signed contract. He would ask for a considerable amount of money down, and have the buyer sign the contract. Unfortunately, when he left the bar in the hands of the new owner, half the patrons went with him. Long story short, this guy had a lot of experience running bars, and he knew a lot of people. Needless to say, every time, some one took over one of his bars it went belly up. I know of one bar he sold five times. He didn't care. He always had large down payments from the buyer, plus a few payments, and he ended up getting the bar back. Please, be cautious!

4. After you have gone through the red tape, and you have a place, the rest is pretty easy. First, call the utilities to have service turned on. They usually will charge a deposit. Also, if you need equipment now is the time to get it. Before you buy anything, go to auctions. Restaurants, are going out of business all the time. You will find some good deals!

5. Of course, you must have liquor. Find out who or where to get liquor from. In some area's it's strictly against the law, to buy liquor out of liquor stores and take into your bar. In other areas that might be fine, where I live, bar owners have certain distributors they must go through. If liquor reps. deliver your alcohol, ask if they can provide you with decorative items, neon signs, etc. This will save you money.

6. Step six is the fun part, "entertainment". You will need lots of entertainment especially on the weekends. Get to know your local bands! The internet would be a good tool for this. Have a variety of entertainment. Here are some more ideas: D.J's, poker-runs, Texas hold em, pool tournaments, darts', wet t-shirt contest, etc. Be original, find something "new". The possibilities are endless.

7. Gambling, is another great form of entertainment. "MAKE SURE TO FOLLOW THE LAWS IN YOUR AREA"! Refer, to step one. When you are inquiring about your licenses, ask about gambling. What gambling is legal, and what licenses are required?

8. Try to have fun! You will be working lots of hours. You will eventually hire help. Do not hire anybody, until, you are going well. You will be married to your bar for the rest of your life! Even after you hire help, you still have to be there to babysit! It only takes one bartender stealing from you, to put you under! Also, you want to make sure no illegal activities are taking place. Some bartenders' will let drugs through the doors, and over serve people like crazy, as long as they are being tipped!

Tips & Warnings

• There are different types of liquor licenses. There is a 210, better known as, 3 way "carry out license". There is a 209 license, A.K.A, "restaurant license". In most cases, this type of license requires you to be located outside city limits. It also, requires you to sell a hundred thousand dollars a year in food sales". That isn't much when you think about it. As I mentioned earlier, instead of paying a fortune for a license, why not start with a 209, get as close as you can to the spot you want, and start a business there. After, you build your business, save your profits to buy the place you really want. Also, list this business for sale. You could end up smelling like a rose. I also need to mention that you can not sell carry out with a restaurant license. Again, just check to see what is available. It would be nice if you could have someone help you with a business plan. If you get bank financing, this is a must!
• Watch the area you are in you are in! Beware of your surroundings! If you open a hole in the wall, redneck bar, "sometimes most profitable", You might end up with some undesirable characters. If certain biker groups join your bar, GOOD LUCK GETTING THEM OUT! Sure, you could call the police. Don't be surprised, if in a couple of months your business burns to the ground!
• Also, most states have D.R.A.M shop laws. This means that if someone in your establishment becomes intoxicated, decides to drive, and goes out here and kills some one, your business is liable.
• Watch your bartenders, some people are not as honest as you or I!
• Please purchase liability insurance, It's a must!
• My advice is to put your business into a corporation, this way, only the business is liable. In other words, " NOBODY CAN SUE YOU PERSONALLY"!
• SEEK ADVICE FROM AN ATTORNEY ON THIS
• SEEK ADVICE FROM AN ATTORNEY BEFORE YOU SIGN ANY CONTRACT
• If you are buying an existing bar, pay attention! Just, because, a bar appears busy, doesn't mean it's turning profit. The current bartenders could be giving free drinks away to 20 people
• Maybe, drugs are being dealt in here, PAY ATTENTION TO YOUR SURROUNDINGS
• Before you inquire about buying the bar, become a patron. You will get a clear picture of what's going on
• Before you pay top dollar for a liquor license, visit bankruptcy court, go to restaurant auctions, tax sales, etc. Also, contact the treasury dept., You might find a cheaper license. The trick is creativity, and diligent research!