Opening a bar can be a very risky business. But with a big risk will usually bring a big reward. To become a successful bar owner, get into your business and stay organized. Design a budget and stick to it. Be prepared for disaster and overtime. And most importantly, be friendly. If you want to open the bar, here are a few steps to help you.
Step
Method 1 of 4: Getting Started
Step 1. Recognize that being in the bar business requires stiff competition
You'll be competing against other bars in your area, as well as other entertainment and shops. It used to be that when people wanted a drink, they had to go to the bar to get it. Now, people can buy alcohol at the local shop just down the road or at the supermarket without any hassle. So, getting involved in the bar business is not easy. By some estimates, 3 out of 4 bars fail in their first year.
Step 2. Be prepared for different work schedules
Especially in the first year of your bar, the bar owner will staff and close until 4 or 5 in the morning. Every day, and back again at 11 in the morning. This can bring a burden to your family life; talk to the family about how being a bar owner can affect them.
Step 3. Find a liquor license
Each watering hole relies on well-stored liquor; If you can't sell liquor to your customers because you don't have a liquor license, your little oasis will dry up pretty quickly.
- Liquor permits can be quite expensive. In places like America, liquor licenses can cost $400,000 to $1.5 million. Liquor licenses usually don't cost this much, but you still have to pay quite a bit of money for this entitlement.
- When you get the permit, make sure you get the permission from the local, city, country and party concerned.
Step 4. Create a clear business plan
Understand local policies, and the customers you want to attract. Having a business plan can help you secure your finances, which banks will find difficult to help.
- If the locals have a minimal drinking habit, consider providing food as well this can help in places where people don't quit right away after work, or in places where people leave early in the evening.
- Don't be under capital. Many bars went bankrupt because they did not have enough capital. Ideally, you need one year of spending. And at the very least, 4 to 6 months of sufficient rent and expenses before starting the business.
Method 2 of 4: Selecting a Location and Theme
Step 1. Find the exact location
Do not use closed bars. The bar must have closed for a reason. Find a suitable place. Instead, look for places that have a busier population of young adults, who – surprisingly – hang out at bars. The more bars/nightclubs you have around, the more competition you will face.
- When choosing a location for your bar, keep these things in mind:
- Highway access is crucial if you want to attract people moving from town to town.
- Parking is also good if you're in an area where people don't tend to walk.
- An easy place to find on the street is also a good place. Being recognizable from the street is an important factor for attracting customers.
Step 2. In general, look for a location that is closer to the customer's office than his home
It's no secret that stressed and tired customers want to pop into the bar after a tiring day at the office. Especially during weekdays, being in the midst of a commercial bustle proves to be more profitable than being on the outskirts of the city.
Step 3. Choose a theme for your bar
Themes don't always have to be on your display, without a doubt a theme. A subtle theme can be a good one too, as long as you have other factors in your favor. But the theme should tell what your bar is all about. So, what's your theme?
- Bars around the house. This is where Chuck and his friends gather after work on Wednesdays, and maybe play darts or even check cash (yes, maybe not.) The bar around the house is probably the most popular type of bar, and is also perfect for small-scale entertainment.
- Sports bar. This is where die-hard fans and curious fans gather to watch the game on Sunday. Don't forget to add food at this type of bar, and a television that can be seen from all seats at the bar.
- Beer bar. This is where beer drinkers go to improve themselves. You'll probably have a lot of competition here, and some of these bars even brew their own beer. This bar produces popular beers that can benefit them in a variety of ways.
- Specialist bar. This is the place where you will find a special wine or drink. Specialty bars either have a deco theme, like a pirate theme, or a liquor theme, like rum – or they combine them into a pirate theme, an amazing rum bar.
Step 4. If you want to have live music, understand the customers you want to get
There are several bars themed country, blues, punk, rock, jazz and others. Attracting the same clientele as your type of bar is a plus, not a must.
- A quiet wine bar might need some jazz or piano.
- Bars around the house may be more suited to rock or comic groups.
- Clubs would be better off with uplifting dance music into their repertoire.
Method 3 of 4: Finishing Important Things
Step 1. Name your bar
It is more complicated than you might think, and every little thing is as important as any other aspect of your business. Your bar's name will become a living advertisement, embodying your entire bar's content. Make sure your bar name should connect with customers on a deep level, tell them what your bar really is and make it sound appealing at the same time.
- Make sure your name bar reflects your theme. If you're a modern wine bar, you probably don't want to take on the name “Bill's Warung” – people will imagine your bar doesn't reflect your real bar.
- Don't be afraid to research the possibilities. Spend your time thinking about what type of customer you want to attract, and what name might be a good fit for them. Don't stop until you get at least three names you like; then, choose from the three names.
Step 2. Create an attractive menu bar
If you want to serve quality food or cocktails, spend more on the preparation; fresh is always better. Try to make your menu bar in line with the theme of your bar, if any. A Mexican themed bar would be a little weird if it didn't have tequila, margaritas or cervezas.
Consider creating a promo menu at certain hours. In the end your profits won't be very high, but the subscribers will definitely increase, and some customers will probably stay after that certain hour is over
Step 3. Contract with an entertainment company for coin-operated machines
Pool tables, dartboards, and touchscreens or arcade games can offer people a diversion when they're drinking. Think about music boxes (jukeboxes) and change machines, especially if your bar is set up in a neighborhood. Usually the profit is divided 50/50 and the service fee is free.
Method 4 of 4: Preparing For Opening
Step 1. Call a local clerk to help look at the property and ask the landlord to confirm everything before you sign the lease
You will thank you later. When you've done this, ask the health department to look into it and ask for a permit.
Step 2. Use friends and acquaintances to help you with electricity, plumbing, sound and construction
Give them a deal for cheaper drinks forever. They are your friends, and you want them to bring their friends to your place. Word of mouth is very important in this business.
Step 3. Advertise the opening at the end of the week
Get rid of the marketing budget for a moment. Get involved in community events. Run direct-mail campaigns and use social media. A lively opening will help create buzz, and buzz will help spread it through word of mouth.
Step 4. Get promotional products
Work with local liquor and beer distributors to provide gifts for customers. Everyone likes to get something free, even if it's just a cheap shirt.
Step 5. Make yourself visible
First of all, make sure you work shifts in the kitchen, behind the bar and up front. You have to effectively supervise your bar operation and learn at the same time. Customers also like to see shop owners.
Tips
- Check who you are renting the land to and how their business is. If people say, “Oh, they're OK, just not the best,” don't sign the contract. They may just extort your money and won't fix anything. This will affect your customers, business and investment.
- Keep an eye on your bartenders and waiters. Make sure they don't tuck their hands in your pockets and they don't discriminate drinks for more tips. By the way, they won't make more tips with cheap tabs.
- Don't get involved with your staff. This can be costly in the long run.
- Keep your business and personal assets separate.
- Don't drink while at work. You can get carried away and things can fall.
Warning
- You probably won't make as much money as you thought, at least in the early days.
- You must understand everything about business and have experience.
- It's not good things that make your business, bad things that destroy your business.
- Good customers are customers who are hard to come by and easy to lose. Understand how to keep them when you get them.
