With restrictions starting to ease and more people venturing out to restaurants and nightclubs, now is a great time to start looking into turning your dream of owning a bar into a reality. There are many considerations when embarking on the business of owning a bar, and with alcohol comes additional challenges like licenses and vendors.
Decisions need to be made, financing must be secured, and you need to choose a location. The following steps provide instructions and advice on how to get you on your way to opening up and owning a bar.
Step One – A Solid Business Plan
For any business to be successful, it needs a strong business plan. A business plan is a detailed document summarizing your business concept. A good business plan will give lenders and investors an idea of how your business will work, financial forecasts about where you see yourself sitting financially after two years or five years, how you plan on marketing your business, and the startup costs.
If you never created a business plan before, some companies can help you with this process. It is wise to get advice from a professional who can give you insight into what money lenders are looking for and where to find possible investors. A professional business plan drawn up by someone with experience is money well spent in the long run.
Step Two – Decide on a Business Structure
This is a very important step in owning a bar for liability reasons. With sole ownership comes personal liability. Here, if something should happen to one of your patrons on your property, you could be held personally liable. It is best to discuss this issue with a lawyer or other knowledgeable professional in order to choose the best structure for your needs.
Step Three – Location, Location, Location
This decision is one of the most important for several reasons. You want to be strategically placed in the market for maximum business. You might want to do some research on where the bars are located in your city, how late they are open, what has caused any to fail, and other similar considerations.
Consulting a professional in the matter is also a good idea when choosing a location because this aspect can make or break your new business.
Step Four – Trademarks
Will your bar have a unique name and logo that you want to trademark to prevent copycats? This step is important especially if your future plans include franchising.
Step Five – Licensing
This is one of the most crucial steps in this process because if you don’t have a license to serve alcohol in your bar, then it is pretty much just a building with chairs and tables, not a business.
The type of license you need depends on whether you will serve hard liquor or just beer and wine and if you are selling food as well.
Types of Licenses
Liquor License
A liquor license is a type of license that is required when owning a bar because selling alcohol is your primary business. How to obtain this type of license depends on your state, province, or region.
It is very important to acquire the correct licenses for the type of business you have so you don’t get indefinitely shut down for not having the right one. It can take a while to obtain a liquor license, so apply for one immediately to avoid postponing your opening.
Music License
Due to copyright laws, music licensing can be a bit tricky, and it is best to consult with a professional in this field or hire a company familiar with providing restaurants and bars with licensed music to play in their establishments.
Streaming services have their own copyright requirements, so if you plan on playing music in your bar, it is best to consult with one of the companies that specialize in such things.
Food License
If you plan on offering your clientele any type of food, you will need a health and food service license. This license is accompanied by an agreement to allow proper inspections of your facility to ensure the food is being prepared according to code.
On your journey to owning a bar, it is best to decide if you are serving food immediately as this license can take some time to process.
Step Six – Choose a Flexible POS System
Your Point Of Sale (POS) system is very important and can fall under the category of customer service. If you have ever experienced eating or drinking somewhere with a group and then being told the business couldn’t split the check or doesn’t take your credit card, you understand how annoying that can be.
Choosing a modern POS system that is in line with the various payment methods available ensures you are not missing out on any business and that everyone is able to buy what you are selling.
There are a million other things that you will need to consider before opening up and owning a bar, but these steps will get you on the way to securing the elements you need to be successful once you do.
