Owning a bar seems like a lot of fun. In reality, however, this is not always the case. If a bar owner wants to have a profitable and successful bar, he needs to put in a lot of hard work, money, and time. Planning is very important here. Before setting up the business, a bar owner has to carefully plan and look into the different aspects of a bar.
If you are intending to set up a bar of your own, understand that it is quite a challenging process. But we’ll help you break into the industry by offering some tips.
- Determine what type of bar you intend to put up. There are lots of bar types that you can consider. There are sports bar, specialty themed bars, entertainment bars, and karaoke bars, to name a few. But remember, choose a type of bar that suits your personality and which you think you can maintain. Don’t just choose a bar based on the trend. Rather, choose a bar that is likely to keep on going.
- Scout for a location. The location should particularly suit the type of bar you wish to start. For example, a sports bar should be near arenas or sports grounds. A karaoke bar must be located in an office district. The potential market in your chosen location should also be considered. You have to find out your potential customers’ age, purchasing power, and preferred products and services. Aside from this, you need to determine the level of competition in the area. Are there too many competitors? And will your business survive with the presence of such competitors?
- Complete the paperwork. Visit the appropriate bureaus and find out all the permits and licenses that you need to secure. Make sure to settle the legal work before launching the bar, so you don’t have to deal with legal problems later on.
- Learn about different kinds of liquors. This is very important if you are serious about owning a bar. Having a solid understanding of all types of liquors will help you determine which are best to serve. Make sure to be familiar with brands, too. And update yourself on the alcohol trends.
- Create a business plan. The business plan will provide the structure for your bar. This detailed document will answer questions like “Where will you get the funds?” “How are you going to make a profit?” “How will you manage your income?” “How are you going to sustain the business?” Basically, this document contains the nitty-gritty of the business. Without which, it is almost impossible to run the business with success.
- Establish a marketing plan. Marketing is an important element of a business’ success. At the start of your planning stage, determine how you are going to attract people into your bar. What can you offer customers? Will you give discounts? Is there a lady’s night? Remember to make a good marketing plan that’s going to set your bar apart from other bars in your area.
Extensive bar and restaurant work experience is important if you wish to open your own bar. So, if this is your first time working in the hospitality industry, you might want to halt your plan of starting up a bar for a while and try to gain experience by working in a bar or restaurant for at least a year. Although partnering with an experienced restaurateur or bar owner might help, your own working experience will definitely get you a long way.