How To Start A Bar

How To Start A Bar - Background Info:

Friends, laughter, celebrations, entertainment--fun! These are the things that might come to your mind when you think about owning your own bar as you imagine rooms filled with friendly conversation, music and people enjoying themselves.

If you're thinking of opening a sports bar, you might envision an exciting game on big-screen TVs with everyone cheering and having a great time.

Owning a bar sounds like the perfect life to many potential entrepreneurs, but it's not always fun and games behind the scenes.

While owning and running a bar has long hours and is hard work, there is one main characteristic about having a bar business: Bars have proven to be, no matter how the economy is, a money maker year round. When people refuse to spend money on other things they will still spend it on alcohol.
No matter where it is located, a bar will always draw people in, many who will become nightly regulars.

Opening a bar takes a set of skills very separate from those required to operate the a bar. Make sure you take care to assemble the right team, write a good plan, and get the funding you need to launch.

How To Start A Bar - Tasks And Skills Needed:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running a bar business:

Bookkeeping

Advertising/marketing

Accounting

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate a bar business:

Create a great atmosphere in your bar

Hire bartenders

Mix and serve cocktails

Inventory management: order liquor and supplies

Clean bar and bar areas

How To Start A Bar - Approximate Daily Hours Needed:

General Hours of Operation: - When your business is open - For a bar that doesn't sell food, there is not much of a need to be open much before 6 at night, as there wont be much of a crowd during the day.

However if a bar does sell food it is important to be open early enough for a lunch rush. When it comes to closing times, most bars typically close at 2 am.

Hours Needed to Prepare - Before Opening and After Hours Activities - Order inventory, clean, do accounting/bank deposits, hold meetings with employees, advertising/promotion.

Number of Employees Needed To Run This Business:

Minimum Number of Employees -During the Start Up Phase: You can start this business yourself on a full-time basis.

Number of Employees - Once Your Business is Up and Running Successfully:

Website maintenance

Record/Bookkeeping

General office

Customer Service

Servers

Bartenders

Wait staff

Greeters

Cleaning crew

Skill Requirements for This Business:

Great people skills

Ability to set a nice atmosphere

Business management skills a plus

Human resources skills a plus

Retail sale experience

Licenses:

You will need to be certified to sell liquor and food. A liquor license and a license to sell food will be required by law to run a bar. These are the two absolute necessities for anyone who owns and runs a bar.

Approximate Minimum Start up Cost:

Bare essential: - A bar can be one of the most expensive businesses to start, but one of the most likely to earn you your money right back.

There are many, many different items one must purchase when starting a bar. The equipment to put in the bar itself will cost quite a bit. Then all the liquor and beer, the beer tabs, coolers for the beer, it will cost a lot, but a quick turn around on business will be seen.

If you are looking to start a decent bar, you can expect to spend at least $100,000.

Minimal exposure - Advertise the opening of the business in newspapers and on the radio. This expense will come out of the three-month funds.

Necessary Equipment to Run this Business:

Necessary Start-Up Equipment & Supplies:

Computer

Printer

Cell phone

Website

Building

Bar stools

Tables

Chairs

Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running:

Televisions

Juke box

Dart machines

Pool tables

Gaming devices

Monthly Expenses To Consider:

Wages
Phone/cell phone
Internet access
Permits
Advertising/Marketing
Electricity
Water

Special Requirements and Considerations For This Business:

Find out all you can about the trends in the industry. Know your competition, in particular, their strengths and weaknesses. This will help you identify your competitive advantage. In other words, this will help you figure out what you can give your customers that they're not getting from the other businesses. And keep from emulating the competition's strategy. Instead, make the most of your own advantage points.
Buy the liquor, beer and supplies for the business. This will be paid for out of the three-month funds. Order enough to last until the next purchasing day. The start up can cost more than what the actual monthly cost will be.
Obtain beer and liquor neon lights and signs from the distributors to decorate the business. Any other items should be bought out of the first three months funds. This expense is a one-time expense.
Hire bartenders and any other staff members that are needed. Be sure to choose carefully, and call references. Pick employees that seem like genuinely nice and hard-working people. Treat them well if you want them to respect you and your business.
Before you toast your new venture, ask yourself these questions in order to determine if the bar or nightclub business is right for you:

1. Do you like people?
2. Are you willing to work nights and weekends?
3. Can you handle your liquor responsibly?
4. Do you mind babysitting adults?
5. Are you prepared to navigate local liquor laws?
A bar isn't a party; it's a business. Treat it that way in order to succeed.
Name your bar or nightclub carefully. A good name will tell potential customers something about your establishment—where it's located, for instance, what it serves or even whether it's laid back or full of energy.
Free and discounted drinks can be great marketing. Be conservative, though; you can't afford to pay for drinks that your customers aren't buying.
Pay attention to the music you play, the furniture you use, the lighting you install and the beers you put on tap; all contribute to the experience you're selling.
When you own a bar, you're competing with scores of other bars in your area, not to mention restaurants and liquor stores. Pay attention to what others are doing; your liquor sales representatives are a good source of information, as they probably call on other bars in your area.
Successful bars and nightclubs know who their customers are and what their customers want well before they open. Find out to whom you can best cater by researching local demographics as well as current alcohol and lifestyle trends.

Pros And Cons of Opening A Bar Business:

Bar

The Pros of Running a Bar Business:

As long as a bar is run by the books it is almost guaranteed to make profit.

It will also allow people to meet a variety of different and interesting people and can become a social hot-spot for all kind of different events in the community.

The Cons of Running a Bar Business:

Location is an issue. Good locations are expense. If other bars are near your own, they will naturally try and compete. This might draw customers out of your bar and over to theirs, hurting profits.

When people drink to much they, well you know, and violence between customers can come in to affect causing problems with police.

Type of Customers You Need to Attract:

One will need to purchase a building big enough to house a bar and have enough area for customers to sit and mingle. How large of an area depends on how big one wants there business to be. You could make room for dancing, bands, disk jockeys, or extra pool tables. Its up to the bar owner.

Bar Business Statistics:

According to the Distilled Spirits Council of the United States (DISCUS), "U.S. spirits sales for 2004 grew 3.1 percent in volume and 5.8 percent in dollars. That translated into 164.2 million 9-liter cases and $14.7 billion in revenue," David Ozgo, chief economist of DISCUS, reports that 2004 was the second year in a row of a 3 percent-plus increase for the first time in many years. Although it was a steady rise across the board, super-premium products had the biggest jump. Ozgo predicts continued growth, citing the ever-expanding variety of brands that fit all tastes and occasions as a major factor.

The total number of operating liquor licenses in restaurants and bars exceeds 225,000, and beer and wine licenses double that amount.

Revenue:

Please see IBIS World for the most current information.

Bar Business Resources:

Industry-Specific Websites:

Start-a-Bar

Nightclub Business 101

Bartender.com

NightClub

Wine Business

Courses:

Professional Bar Management Mastery Level Certification

Bar Equipment and Supplies:

Wine And Spirits Wholesalers of America

Forums:

NightClub

Club Planet

Coffee Talk with Experts

Franchises:

The Franchise Mall

Gaebler

Associations:

The Distilled Spirits Council of the United States, the National Bar and Restaurant Management Association

The American Beverage Licensees (ABL)

The American Liquor License Exchange

Compliance Service of America

National Association of Alcoholic Beverage Licensing Attorneys

Books:

The Complete Idiot's Guide to Starting and Running a Bar [Paperback]

Software:

Inventory System

Other:

How to Start a Bar/Club

Free Report: 7 Secrets to Bar Startup Funding

How to Research Effectively Before Opening Your Own Bar

How to start and manage a bar: tips and tricks for making more money

Businesses To Related to a Bar Business:

Restaurant
Hospitality
Catering
Party-planning