You have the concept, you have the money, you’re ready to get started.
The next important thing for opening a bar is to choose the best option for you: buy an existing bar, build your own, rebuild, or buy a franchise. Let’s take a look at each of these.
Buying an existing bar
- The number 1 tip here is to research ahead of time before you take ownership. Here are a few ways to learn all about the place you plan to buy:
- Become a regular customer. observe customers and staff; strike up a conversation with a few to ask about their general impressions of the place. This way, you are likely to get a lot of unbiased and truthful information.
- Ask the right questions – Is the place clean? How well organized are the staff? Do they pay enough attention to customers or are they also attentive to the needs of their servers? What do customers say about the atmosphere, food, cleanliness, etc.?
- Consult your investment. Usually a fair bullion price is equal to the amount of annual gross revenue. However, this can vary greatly depending on the location and several other factors, including the seller’s motivation to sell the location and the general state of the economy. Consult with your lawyer or accountant about the transaction. You should also compare the bar’s inventory to actual sales to make sure you’re getting the correct gross revenue figures for the year.
- Do a complete inventory before and after the purchase. You should make sure you get everything in the contract before and after you take possession.
Creating your own bar
How do you create a bar from scratch? It may sound exciting; however, it can also be a lengthy and costly process with many additional costs.
Plan all the financial details with high estimates. Then plan your projected income with conservative estimates.
Then match the numbers to your resources before you start. Also, don’t forget the additional personnel costs, as you will probably need help from an architect, contractors, real estate agent, etc.
Upgrading an existing bar
When remodeling an existing establishment that fully meets your expectations and concept, keep the following points in mind:
- Avoid a radical takeover and transition by operating under the same name.
- Decide whether you want to operate during the renovation or close and reopen later.
- Decide whether you will keep the old name or introduce a new one.
Before committing, make sure you carefully analyze the transaction. Make a list of everything you’d like to change, and then consult with your team about whether it’s worth the effort and money.
Buying a franchise.
Joining a franchise gives you a chance to avoid some of the mistakes as a rookie bar owner because you will become part of a larger, more experienced organization. On the other hand, you have less room for creativity and customization of the place.
No matter what type of business structure you choose, make sure you consult with your lawyer and accountant at this stage, and you pick the best of the deal and settle on the right type of ownership.