Have you ever wondered what it might be like to open your own bar? It’s a fun idea, to open your own business, but it can be challenging to know where to start. Below, we’ve outlined how to open your own bar.
Create a Business Plan
When starting a business, you don’t make decisions based on the ideas that randomly come into your mind. You want to identify and outline the steps needed to open your business; this business plan is going to include everything, from the location, legal structure, products, services, marketing strategy, financial projections, etc. It is your roadmap to success, and with it, you’ll be able to determine the holes in your business model and figure out what you need.
Bar Technology
Your bar is going to need some form of technology to process payments, so you’ll need to identify a robust POS system for your bar. It will need to be able to create open tickets, incorporate a tipping system, and help you manage your inventory. You’re also going to need supplies and premium barware for your drinks.
Funding
The likelihood of you having enough money to open a bar is very low. There are many costs involved with opening a bar, from furnishings to insurance to licenses. Whether you are opening up a completely new bar or purchasing a pre-existing bar, opening your own bar can be costly.
And once you have opened your bar, you’ll need to account for inventory, rents, insurance, payroll, and other costs.
Therefore, you’ll need some sort of funding to get started. There are business credit cards, which can reward you points while covering the costs of some of your purchases. There are also business loans available, and within your business plan, you can keep track of the costs and payments of these loans.
Name and Logo
You’re going to need a name and logo for your bar, and this is a part of the bar opening process that you should give a significant amount of thought into. Your bar’s name is going to be part of your business’s brand, and it should be memorable.
Register
Before you can run a business, you have to register with local authorities; the requirements for registration differ depending on the city and state, but you’ll need to acquire an employer identification number for tax purposes.
Location
Location is everything when it comes to a business. Where you decide to place your bar can either make or break your business. When choosing the location, there are a few things you need to consider.
Seating
What is the space like within the location? Are you going to have enough space to accommodate a bar and a back of house, and still have enough space left over for seating?
Accessibility
How accessible is the location you’re considering? You want a space that can be easily accessed, likely close to a parking lot.
Zoning
Are you able to open up a bar in this area? Some areas may not allow a bar because it is close to a grade school or government office.
Affordability
Consider the rent and costs of utilities in the area. Will you be able to afford the space for your bar? Will you be able to make enough in sales to both cover utility costs and business costs?
Demographics
What demographics are you going for? Think of the audience you are trying to appeal to. If you want to attract younger adults, it won’t make much sense to open up a bar near a retirement community. Or, if you’re aiming for affluent patrons, you’ll want to situate your bar in a more affluent section of town.
Licenses and Permits
Before you can open a bar to the public, you’ll need to obtain the proper licenses and permits. This is a process that can take time, so start as soon as you can. Every new business requires licenses and permits, but bars are more of a hassle because the alcohol industry is heavily regulated.
The very first step to take is obtaining a license from the Alcohol and Tobacco Trade and Tax Bureau, or TTB. This entity is responsible for enforcing laws that regulate the production of alcohol as well as its import. This is one of the longer processes, and it can take from six months to a year to complete.
You also need liquor licenses at both the state and local levels; if your establishment is going to serve food, you’ll also need a permit to sell food. Once all of these permits and licenses are obtained, keep your bar up to code.
Suppliers
You’ll need to find suppliers that are of quality and who are reliable. It can be challenging at first, but you can connect to other bar owners to see if they can recommend specific vendors. Before conducting business with any supplier, you should:
- Find out how long they have been in business
- Connect with any references
- Learn their payment terms
- Discuss their quality assurance process
If a business has had difficulty with certain vendors, it would be best not to conduct business with them. Only work with suppliers who are willing to work with you and the needs of your business.
Opening your own bar is a long process with many steps, but it is possible.
