How to Open a Bar With a Business Plan
Opening a bar is no small task. After you read through these instructions, ask yourself if you are willing to commit the time, money and effort necessary to build a successful bar. It takes careful planning and years of hard work for a bar to begin to make a profit. If you think you have what it takes, read on.
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Instructions
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Write your business plan
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1
Choose your market.
Who do you want to come to your bar? Think carefully about what kind of clientele you want to serve. This will make the process of choosing what kind of bar you want a little simpler.
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2
Choose your type of bar.
Decide whether you want to open a sports bar, an Irish pub or a martini bar before you ask for money. Selecting a type also will help determine your bar's food and drinks menu, as well as pricing.
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3
Create a budget.
Realistically determine how much money you will need to begin your business. Account for every detail from utilities to produce to personnel, including your own paycheck. Investors will want to see where every penny is going before they commit any money. You will also want to predict when your bar will begin making a profit and how the profit will be achieved.
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4
Write your business plan.
You should go through several drafts before finishing your business plan. Remember the business plan is a sales piece and you want it to invite investors to give you money for your bar. You can find templates for business plans online and check out your local community college for business and bartending classes.
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5
Present your business plan.
Now that you have an organized, designed and written business plan, it's time to present it to potential investors. You may apply for federal grants or business loans from banks. However you choose to raise money, a good business plan will encourage investors. They will know you have thought things through and are prepared for any complications.
Open your bar.
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6
Scout the location.
You want to find a place that fits your budget, but also easily allows customers to find you. Be sure you aren't too close to another bar just like yours, but also check that you aren't too far away from other nightlife hot spots.
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7
Hire your employees.
You will need to hire a few reputable employees who can be counted on through thick and thin for the first few years. You will need bartenders, wait staff and cooks for most bars.
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8
Create a marketing plan.
You may or may not have included this step as part of your business plan. However it is important to know what message you want to send to your clients. This way you will be able to ensure your image, message and branding is clear and cohesive. You may choose to hire a marketer, advertiser or public relations professional to assist with this step.
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9
Get licensed.
Depending on where you are opening your bar will determine what kind of licensing you need. You will need to ensure you have a business license, food license (and all employees have food handlers permits) and a liquor license (bartenders may need additional certification).
The legal process can be long, expensive and difficult. You may want to hire an attorney to help you through the process.
Make sure you have all licenses needed as issued by the city, county, state and federal government.
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10
Get vendors.
You need to purchase your food and drinks from reliable companies. Ask around. Find out where other bars order their food and drinks from and follow suit. You will need to order based on the menu you created for your business plan as dictated by your target market and type of bar.
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Tips & Warnings
A bar is a large initial investment. You may not see a profit for at least the first three years.
Don't be afraid to shop around and ask everyone you know for help. You'll be surprised at who knows who and what.
If you haven't worked in a bar before, it's a good idea to get some experience working in a place similar to what you would like to open before starting the process.
The bar business is highly volatile and chances are high you could lose money.
References
Resources
- Photo Credit computer image by michele goglio from Fotolia.com
