If it has been your dream to open up a bar, then this piece is for you. It could be that you’ve put a lot of thought into it but aren’t sure where or when to start. The thing is, there’s a lot that goes in when it comes to opening any type of business.
Before spending any money on your start-up, there are several things that you might need to put into consideration. Here are the steps to take before opening your own bar.
1. Come Up With A Bar Business Plan
There’s no business success without a plan. If you’re looking to start and run a successful business, a solid business plan is critical.
In this case, you need to come up with a bar concept that will be different from that of your competitors. For instance, your brand name could attract potential customers.
The same might apply to the quality of services offered, not to mention features that might include a beer menu, a special holiday setup, or the overall welcoming ambiance in your bar. Better yet, which kinds of patrons do you wish to serve?
All these are crucial features that will determine your growth, and should thus be included in the business plan.
2. What Is Your Business Entity?
This is an introductory phase that might help you calculate (and understand) the risks involved in running your bar. Choosing a business structure is one of the things you shouldn’t forget when starting a business, and a bar is no exception.
Apart from helping you navigate the liabilities involved in your business, your business structure also defines your roles, and your income. It even affects the options available to you when you need funding. Among the most common bar business entity types include:
- Partnerships
- Sole proprietorships
- Limited company liability type of businesses
3. What is Your Execution Plan?
Executing a bar business plan requires time, research, and an assessment of your financial situation. It might take years to come up with ways to execute a plan.
Among the most critical steps might include choosing the right location, the products to push, and your clientele. Do you have enough capital or cash flow to execute your plan?
Especially if you are looking forward to a high customer retention rate, your initial investment will, of course, matter a great deal.
Assessing your financial situation will provide you with insights on whether you can do it out of your savings, or you might need additional funding at the point of starting up.
4. Educate Yourself about the Bar Business Online
This is a crucial element when it comes to opening a bar business. Lack of knowledge in running a business can be catastrophic. You’ll have staff to manage, inventory to keep count of, customers to take care of, and, not to mention other daily business running activities.
The good thing is that we live in an internet age, where information for pretty much anything is available online if you care to look. It is crucial to venture into the business while well-informed.
You could start by looking into the local bars near you, studying their menus, and even their amenities. A good site you can use to find such information is untappd.com, which also has a blog covering many topics about beer and the alcohol industry.
Beer Snobs shares that you can learn a lot from some online research, including how to price your beers, what to offer your customers, investing in the right bar machinery, what it takes to give your bar a fresh décor, and much more.
5. Business Management
Managing a bar mostly depends on the structure you choose for the business. Sole proprietorships, for instance, are usually preferred as they give the owner sole ownership, decision-making, and the execution of sensitive business plans.
With a sole proprietorship, you’ll be the boss, you can keep all your profits, the startup costs are low, and the operational costs of running your bar will be low.
But most if not all of the weight will be on your shoulders as far as managing the bar is concerned. Plus, it might not be the wisest choice for safeguarding your personal assets. You’ll also need to have a plan for hiring and understand your labor needs as your business grows.
As you can see, there’s a lot that goes into opening a new bar. Like in many startups, the statistics will not be favorable in terms of raising the capital, keeping your business running, or retaining your customers. It’s for these reasons that you need to formulate a strong business plan and execute it to the letter.
