So, you’ve had it with the 9 to 5 life. Something tells you that meeting people and mixing drinks would be a lot more fun. Maybe you’ve even been told that you have a thing for coming up with great new concoctions.
If you think that all of this would make for opening a great bar, you’re probably right. But opening a bar is much more than just getting some liquor together and buying some restaurant bar stools. Follow the 10 things below and you will be well on your way.
Create a Business Plan
Once you open your bar, you will need a roadmap to show you how to operate once the doors are open. A business plan is a written form of your vision. It won’t guarantee your success, but it will make it much more difficult to fail. A business plan will also help you to identify holes in your business model and give you room for ideas on how to fill them.
Decide on a Business Structure
One of the most important things you can decide when starting a business is to determine its structure. Specifically, will it be set up as a sole proprietorship, a partnership, or a corporation? There are many advantages and disadvantages to each of these, and a full explanation as well as a determination which is best for you should be done with a financial advisor.
No business can succeed without adequate funding. In fact, the Small Business Administration 90 percent of small businesses fail in the first year due to inadequate funding.
Trademark and Name and Logo
When you start out, you should create a name and logo to give your business a unique identity. After this is done, you should protect it by registering it with the U.S. Patent and Trademark Office.
Obtain the Proper Licenses
It is critical that before you open your bar, that you make sure to get all of the necessary permits and licenses to avoid legal issues. State and local laws differ, so make sure you understand what is needed. Some of these licenses are easy to obtain, while others are more complicated. Skipping this step can not only get you into serious trouble, but it can also cost you a lot of money.
Pick a Location
It pays to always keep the three most important things about sales in mind: location, location, and location. Besides where your bar is located, there are other things to remember:
Style. What will the overall theme of your bar be? Formal? Casual? Sports? This will determine who your bar is likely to appeal to. This will also help to determine what kind of furniture-;tables and seating–you need to have.
Demographics. Despite what many people believe, there is no such thing as a “general public.” Instead, the public is made up of many groups, each with their own demographic, such as older adults, college students, and many more. To a great extent, you are picking your demographic when you select your location.
Accounting and Inventory
If you want to sell something, you will need to buy something. This includes alcohol and everything else you want to sell. And when you start to sell what you have bought and made, you have to know how to set prices and profit points. All of this takes accounting, which should, ideally, be integrated with your POP system.
Buy a Good POP System
To keep a business successful, you need to know what is happening from an accounting perspective. A good POP system-;bar specific, if possible-;will help you keep up with everything.
Hire the Best
Without having good people working for you, you will not succeed. Whoever they might be-;bartenders, waitstaff, and everyone else-;are part of what keeps people coming back.
A successful bar depends on two things: customers who come in and those who come back. Attract them with good promotional activities. Keep them coming back by enjoying a good experience.