How to Open a Bar

Most people live under the misconception that once they learn how to open a bar, they can spend the rest of their lives having fun with their friends and customers. Though this is true to a certain extent, it is also true that running a bar is not an easy job at all. In fact it can be very taxing and very difficult, and it requires a large amount of commitment from you.

Some of the biggest disadvantages of opening a bar are the long working hours, losing out on holidays, weekends and vacations, extreme attention to details and dealing with a large number of boisterous and over enthused customers. If you are willing to take on these problems that naturally come with entrepreneurship, then here is a basic guide for you to learn what does it take to open a bar.

How to Open a Bar

The very first thing that you need to know is that competition between various bars and restaurants is fierce. This is something that you have to deal with, and you can tackle this problem by providing the customers with a unique experience in your bar. Secondly, a bar owner needs to be extremely social in nature. Most bar owners hire bar managers and these are the people who ensure that all the customers are happy. Most new bars fail within a few months due to insufficient capital, and also because they just do not know how to run a bar successfully.

If you still want to learn how to open a bar, you need to decide what kind of a bar you wish to own. You can choose one from the following options.

• The neighborhood bar is the most common type of bar found in the US. These exist in small neighborhoods or big ones, and most of the customers there are regulars whom the bar owner will know personally. Depending on the location of the bar, and its capacity, the cost of opening a bar of this type will be between $10,000 - $1 million.
• Another option is the sports bar, wherein you have to ensure that everyone in the bar can view a TV screen clearly. Additional investments in the shape of TV sets and a good audio system will be necessary in such bars. The food menu will also be considerably different in such establishments.
• If you are more knowledgeable about various kinds of alcohol, you can open a specialty bar as well. Here you will only be serving a specific kind of alcohol or beer, and thus the customers will be more refined and sophisticated in nature.
• You can also opt to open a brewpub, wherein you will be brewing your own beer. The choices of beer available to customers will be extensive as a result, and you will definitely develop some loyal customers and clientele.

Other Notable Considerations

As you may have noticed by now, the answer to 'How much does it cost to open a bar' is something that is dependent on a variety of factors. The size of the bar, the location, the profile of potential customers and the scale of operations will all play a crucial role in this process. Here is a list of items that will demand a fair amount of investment from you, and will cause the variations in the price of the bar.

• The rent of the building or the premises.
• The various liquor licenses and permits that you will need to acquire.
• The costs to make the place look like a bar.
• The cost of furniture and all necessary equipment.
• The cost of accounting and insurance.
• The cost of various legal services.
• The cost of various utilities.
• The cost of recruiting and paying employees.
• The cost of the inventory that you will need to start with.
• The cost of marketing and promotions.
• Various miscellaneous expenses.

Once you have chosen the nature of your bar, the next step is to carry out extensive market research. With the help of this research, you will be able to decide the kind of alcohol you should serve, the kind of food you should serve, the alcohol trends in the country and in your state, the lifestyle trends of people living in your neighborhood, the level and nature of competition and the general age and occupation of your targeted customers. When you want to learn how to open a bar, you need to plan everything in detail and not leave anything to chance. Only the ones who are best prepared will be the ones who succeed in such matters. If you have been to a bar, you will know that even the kind of music that is playing makes a difference, so these are all small things that you must be aware of beforehand.

Additionally, the importance of an effective business plan cannot be stressed enough, as far as a bar is concerned. This will serve as your guide through everything, and it will give you something to aim for during the course of your operations.

To sum it up, here are the basic steps that you will have to follow if you wish to learn how to open a bar.

1. Make a business plan.
2. Decide on the type of bar you want.
3. Get a good partner or manager.
4. Get a reliable source of capital.
5. Pick a suitable location.
6. Pick a good name for the bar.
7. Choose a theme for the bar, based on extensive market research.
8. Make a good financial outline.
9. Get all the licenses and permits.
10. Scan your competition and rivals.
11. Employ reliable people, and also get insurance.
12. Decide on the menu and music and other such things.
13. Enjoy your new bar.

Running a bar is no child's play, and you need to be prepared to really slog it out. In all likelihood, your bar may not even be successful, because very few actually are. Only the people with a real sense of commitment can last in this business, and this article on 'How to open a bar' is for them. Cheers.