Starting your own bar might seem like the perfect job. You get to mix your own creative, signature drinks, socialize with the patrons, and stay out all night long. But it’s not just a never-ending party. The bar business is very risky, and you need to approach it as you would any other business venture, with a serious mindset and a willingness to stick to a set of goals.
To help you craft your bar’s business plan, here are some recommendations.
Get a liquor license
A liquor license is a legal document that allows you to sell and serve alcohol. Some of licenses only allow for the sale of beer and wine, while others may allow you to sell food at your bar as well as drinks. Without a liquor license, you will be unable to sell alcohol.
Since each area has different regulations concerning the issuance of liquor licenses, make sure you are familiar with the process in your area.
Develop your business plan
Every successful business has a plan behind it. This plan must contain goals, ways to promote sustainable growth, a fully priced-out menu and a framework for expenses. You should think carefully about all of these, as well as determine a budget for starting out that is as precise as possible.
Generally, experts recommend that you have a year’s worth of expenses in reserve, as most venues do not make a profit or even break even for the first year. You should also plan to always have some money in reserve to cover your operating expenses even when the bar is doing well. This is why it’s important to be aware of how much every expense is costing you and how you plan to tackle it.
Aside from being organized about your expenses and sticking to your plan, you should pay close attention to detail. Think about the image you want to project and always find ways to promote it. Keep everything clean and orderly, and make sure all of your ingredients are in stock. If there’s a problem, deal with it as quickly and effectively as possible. Include how you are going to keep track of these things in your plan, whether you plan to do it yourself or if you plan to hire help, and budget accordingly.
Find the right venue
Finally, you should find the right home for your bar, one that fits your image as well as your budget. Do some research and find the best prices in your area. For example, you can find the best mortgage rates with RateSupermarket.ca. Either way, finding a location with the right prices, location and details should be a major priority.
Starting a bar is a risky proposition, but with the right planning and organization, it can be financially rewarding as well as fun. As long as you do your homework, you could be the proud owner of the next big hotspot.
Dan Bull offers business advice to people looking to start their own business.