A bar is one of the most lucrative businesses you can start today. However, starting a profitable bar business is challenging, even with a lot of experience in running a company.
Usually, starting a bar business will involve more than just getting a liquor license. You must carefully plan and execute every step, from selecting the right location, suppliers to hiring the right employees.
If you dream of opening a bar business, this article will guide you on turning your goal into a reality.Are you looking to open your own bar business? Here are six steps to help you get started! Click To Tweet
Write a Business Plan to Reach Your Goals
Writing a business plan is the first step toward getting your profitable bar business off the ground. In simple terms, a business plan will help you define your business's long-term growth and profitability goals.
The plan will also include specific details on how you intend to reach those goals, including the number of employees you need and the products and services you offer.
On top of that, a business plan will help you share relevant information with those you rely on to support the organization. For example, stating how much a keg of craft beer costs in your business plan will ensure new employees and the entire management team are on the same page regarding beer pricing.
Choose The Right Location for Your Profitable Bar Business
Choosing the right location has a significant impact on the success of your bar business. The first step to choosing the right bar site is determining your target customers. For example, an easy-to-access place might be a good fit if you target university students, blue-collar employees, or conservative communities.
Additionally, you will want to work with a real estate professional to help you find the best spot available. Renting or purchasing your storefront will be one of the highest upfront expenditures, ensuring that your real estate agent has extensive expertise in dealing with renters to guide you through the lease process.
Choose Your Bar's Name (Short and Easy to Pronounce)
Choosing your bar business name is a significant part of your brand identity. A good rule of thumb is to ensure the name you pick is unique and consistent with your company's image.
More importantly, remember that your business name will appear on virtually everything, from your menus to your staff uniforms to your adverts. Therefore, avoid using phrases that are either lengthy or difficult to pronounce.
Obtain Financing for Your Profitable Bar Business
Doing a financial forecast is an excellent way to understand how much money you will need to start your profitable bar business. You can begin by compiling a list of all the expenses associated with starting a bar and then add in the costs of everyday operations.
Using this information, you may develop a budget and estimate the money you will need to keep your bar running. With the specific figure of the money you need, it is possible to apply for a loan without borrowing more or less than you need.
Obtain Licenses and Permits is a Must for a Successful Bar
Getting the required business permits and licenses is vital when starting a bar business. In addition, you must ensure that you are compliant with all the local requirements and regulations for bar businesses in your state.
In some cases, you will be required to obtain permits for food and certain beverages. Therefore, ensure that you get in touch with the local regulatory bodies to understand all the requirements.
Identify Distributors You Want to Work With
Your business's success or failure depends on how satisfied your customers are. That is why it is so essential to work with reputable bar suppliers.
A good supplier must have been in business for a long time and have a reputation for quality and reliability. Joining local bar owners' associations is one way to identify reputable suppliers and learn a few other tricks about running a profitable bar business.