You are determined to do it, but you do not know where to start. This guide is a list of steps to follow, clearly describing all aspects of starting a bar with examples, details, tips, and great ideas.
Ready to take another step towards opening the bar of your dreams? Let's start right away.
If you want to regain control over your life, live your passion and become your own boss by opening a bar , I highly recommend the Method which will help you achieve these results:
- A timeline & a guideline for opening a bar (you will no longer feel lost, you will know where to go and how to get started)
- Avoid beginner traps (and save thousands of Euros)
- Raise funds and obtain financing from your bank to finance your bar
- A unique organizational tool (you just have to follow and apply my advice to get started)
- Considerable time savings (gain more than 10 years of experience)
- A network & a community of people who look like YOU
- The assurance of setting up a reliable and profitable bar (thanks to a method that I myself applied to all of my projects, and also applied by all the entrepreneurs I was able to meet)
Open a bar: decide what types of bar you want to open.
The first essential step before you start is to decide what type of bar you would like to run. Here is a brief overview of the different types of bars.
Neighborhood bar: Small comfortable establishments where locals come for a drink on Friday evening. It has this friendly “home-like” atmosphere and most likely you will get to know all of the regulars.
Startup costs depend largely on your location and the type of
Bar license you decide to buy (beer and wine only or alcohol too).
How much would it cost to open such a bar? You can buy an existing one or create a from scratch. Your income would depend heavily on the location and capacity of the bar. However, one of the main advantages of starting a neighborhood bar is that you can duplicate it in any other place and double the profits.
Sports bar: Compared to neighborhood bars, sports bars usually offer a wider variety of food on the menu - pizza, sandwiches, and other appetizers to keep the crowd full during games. If you want to open your own bar, you will need to invest in a few wide-screen TVs, decent sound, and most likely satellite TV, since the percentage of your income depends heavily on the technology you use. Your customers come with the intention of having fun together while watching a sport, even on the big screen. In addition, to entertain the audience, you can add video games and sports games to keep your customers engaged. The potential income depends on the location, capacity and concept of your bar.
Beer bar: Beer bars offer a wide choice of different beers with appetizers and snacks on the menu. Breweries generally offer a few types of their own draft beer with a few selections of bottled beers. With a beer bar, you also have the ability to control what you produce and the amount of product you produce.
The advantages of starting a beer bar are that you will spend less money and effort to get the license. Another major benefit for those who want to open such a bar - men and young adults drink beer more often than any other alcoholic drink, which means you will always have customers.
Open a bar: create your concept
Once you have agreed on the type of bar you would like to own, you should decide on the concept. You must have a clear vision of what your establishment would be down to the smallest detail.
Why?
- This will help you stay focused on the bar.
- It will help your future guests to describe it to others and spread the word.
The concept must adapt to both your location and the market. Do you already have a location in mind? Work backwards and think of a place that the local community will like.
Possible concepts - a theme bar on the beach; a cocktail pairing bar; a high-end and sophisticated martini bar for women, etc.
Don't limit yourself first and list even the wildest ideas. Do your research and visit various establishments in your area. Check out their concepts; think about what they are missing or what you would have done differently.
Understand who their customers are and how you can attract them. Remember to differentiate yourself above all, there is no point in duplicating what already exists in your neighborhood or the neighborhood of choice.
Now, as you have a general idea of the type of bar you would like to open, it's time to move on to more complex questions - decide the structure of your future business!
Open a bar: identify the structure of your business
You have the concept, you have the money, you are ready to take action. The next crucial point for opening a bar is to decide the best option for you: buy an existing bar, build your own bar, renovate or buy a franchise. Let's take a look at each of them.
Purchase of an existing bar
Tip number 1 here - do your research ahead of time before taking over. Here are some ways to find out everything about the place you intend to buy:
- Become a regular. Observe customers and staff; start a conversation with a few people to ask them for their general impressions of the place. In this way, you will likely get a lot of unbiased and truthful information.
- Ask the right type of questions - Is the installation clean? How well organized are the staff? Do they pay enough attention to customers or are they also attentive to the needs of their servers? What customers say about the atmosphere, food, cleanliness, etc.
- Consult about your investment. Usually, a fair price for a bar is equivalent to the amount of gross revenue for a year. However, this can vary greatly depending on location and other factors, including the seller's motivation to sell the location and the general state of the economy. Consult with your lawyer or accountant regarding the transaction.
You should also compare the bar inventory to the actual sales volume to make sure you get the right numbers for a year's gross revenue.
- Make a complete inventory before and after the purchase. You must make sure that you get everything indicated in the contract before and after the pick-up.
Open a bar: choose the right equipment
Now that you have a general overview of your menu in mind, it's time to stock up on furniture & equipment! Think about what your customers would like to see. Do they prefer decor to comfort? Do they want to be in a minimalist, design or chic decor?
Here are some more important questions to ask yourself before purchasing your equipment:
1. Does it improve bar production or service?
2. Does it meet your expectations in terms of speed, volume and quality?
3. Do you have enough space to install it?
4. Does this correspond to the concept of your bar?
5. Is it safe and easy to use?
6. Does it resist the use and abuse of your staff and / or customers?
7. Are there additional installation / maintenance costs?
8. How easy is it to clean?
Example of a question to ask yourself that is not very important: How many glasses do you need? Well, it depends on the size of your room and the approximate number of customers per day. The average number is around 18 types of glasses from 12 to 48 of each type for an establishment which serves 50 to 75 customers every two hours.
