Bars are one of those retail businesses which have a relatively low barrier to entry for new startups to enter and compete in the market.
In other words, all you really need is money in order to open your own bar.
However, to remain profitable, you must have the knowledge to run it yourself or be able to hire an experienced team who will manage the business.
If you’re thinking about opening a bar, here’s a useful step by step guide on how to open a bar:
- Write a Detailed Business Plan
- Budget for the Required Startup Costs
- Budget for the Cost of Stocks and Bar Inventory
- Analyze the Overheads & Operating Costs
- Allow for a minimum of 3 months Working Capital
- Finalize the Total Capital Required
- Find the Money to Fund the Business
- Confirm a Name for the Bar and Company
- Incorporate a Company
- Open a Bank Account
- Deposit the Capital into the Bank
- Find a Location for the Bar
- Sign the Property Lease/Rental Agreement
- Register the Business with the Local Authorities
- Get all the Relevant Permits and Licenses
- Engage an Interior Designer & Contractor
- Renovate & Furnish the new Premises
- Purchase all Bar and Operations Equipment
- Hire the Management Team and Staff
- Train & Get Uniforms for all Team Members
- Confirm your Menu & Stock Requirements
- Enter Menu Items & Pricing into the POS system
- Negotiate Contracts & Terms with Suppliers
- Purchase all Inventory necessary to run the bar
- Test all Audio, Visual and Lighting Equipment
- Do a trial run with the entire operations team
- Open the Bar for Business
Okay, that’s just the broad outline. Now, you really need to think through the details within each point mentioned.
Unless you’ve run a similar business before, chances are that you may not understand some of the steps highlighted. Make sure you figure them out, as you should really try to know the business inside out before starting out.
In the meantime, click the following links to learn more about whether you can make money investing in a bar business and how much capital you need to open it.