Home News How To Open A Bar In 6 Easy Steps

How To Open A Bar In 6 Easy Steps

Opening a bar is a big decision, and it may be a daunting task. It is not just about the location, the decor, and the drinks. It is also about how you will make money from your establishment. 

You need to make sure your bar will be successful and profitable. At the bottom of things, opening a bar on your own is quite similar to starting any kind of small business, with the extra aspect, of course, of serving alcohol to people.

So, it’s important to note that bars demand nonstop maintenance, they require significant investment to get started, and they aren’t anti-recessionary. So, you’ll need to ensure you take the time and effort required to plan deliberately in order to successfully start your own bar.

This guide will help you with the process of opening a bar from start to finish. Below are the necessary steps to take in order to make your dream come true.

Research The Industry

Before you get started with writing a business plan, it’s important to do some research on the industry you are entering. This will help you understand what is going on in the market and how your product or service can best meet customer needs. You should also research what other similar businesses are doing in the industry and how they are succeeding.

It is important to take time to do this step because it will give you an idea of what needs exist in the market and how your business can meet them. For example, if there are not many bars in your area that serve vegan food, then this might be a good niche for you to fill.

Write Your Business Plan

A bar is a kind of business where a deficit of initial planning might be costly, and sometimes impossible to fix. For that reason, it’s crucial to have a bar business plan when you are starting it.

The minor details aren’t exceedingly significant, because they’re likely to change with time. For instance, don’t plan on your break-even level to be precisely 2 years from today, instead, 20-25 months depending on three or four main factors.

Bear in mind that creating a bar business plan will help you distinguish holes in your business model that can be solved before starting and minimize your risk of failure. It will also help you put your important goals in writing, such as your vision statement and competitive edge.

Find A Proper Location

Picking a proper business location is essential to your long-term success. Throughout the planning stage, you may consider getting in touch with your regional chamber of commerce to obtain information on your target audience. Will you be catering to college students, the working class, the art community, or conservative commuters?

You can also work with a real estate agent that is familiar with the local neighborhood and can help you choose the best location at the cheapest price. Renting or buying your shop will be one of the biggest upfront expenses when opening a bar. So, you’ll want to ensure the real estate agent has experience working with renters and knows how to navigate you through the leasing process.

Register Your Business

It’s impossible to run a business without appropriate registration. The conditions for registering your bar depend on the area your business will operate in. Like with any other business, you’ll need to obtain an EIN for tax filing purposes and register your business.

You will also need to pick a suitable business entity type. Since bars are prone to bigger legal risks than other businesses, you should go with an LLC or corporation. 

Obtain Licenses And Permits

Bar owners usually forget about the trouble that comes with permits and licensing. To be perfectly clear, alcohol is a greatly regulated business.

First, you’ll need a license from TTB, the entity responsible for applying laws to:

  • Regulating alcohol production, importation, and wholesale businesses; 
  • Tobacco manufacturing and importing businesses; and 
  • Alcohol labeling and advertising businesses;

The process can take anywhere from 6 to 12 months to finish. Next, you’ll have to obtain liquor licenses at the local and state level. Additionally, if you want to serve food, you’ll also need to obtain a food seller’s permit.

Find Suppliers

Satisfying vendors can make or break a business. That’s why finding the best suppliers is an absolute must.

Once you’re looking for good suppliers, here are some things you should consider:

  • How long they are in business;
  • References;
  • Minimum order amount;
  • Credit periods;
  • QA process.

A good supplier should be willing to work with you and fully understand your business needs. If you have an unpleasant experience with a supplier, don’t be afraid to find a new one immediately.

Final Words

It might sound simple, but running a bar may be physically and mentally tiring. But, as long as you have a clear picture of the design and work relentlessly to offer excellent customer service, people will come back and your business will thrive.

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Mary nurses a deep passion for any kind of technical or technological happenings all around the globe. She is currently putting up in Miami. Internet is her forte and writing articles on the net for modern day technological wonders are her only hobby. You can find her at mary@pc-tablet.com.