business plan for starting a bar

Bar Business Plan Template

Written by Dave Lavinsky

Bar Business Plan Outline

• Bar Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Bar Business Plan Here

Bar Business Plan

You’ve come to the right place to create a business plan for your bar or pub.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their bars and pubs.

To write a successful bar business plan, you will first need to decide what type of bar you want to open. Do you plan to open a sports bar, a wine bar, a cocktail bar, or a nightclub? What kind of alcoholic beverages will you serve? Will you have live music?

You will then need to gather information about your business and the bar industry. This type of information includes data about your potential customers, marketing strategies to reach your target market, and 5-year pro-forma financial statements (income statement, balance sheet and cash flow statement).

Sample Bar Business Plan

The following bar business plan example gives you the key elements to include in a winning business plan:

• Executive Summary – The Executive Summary is the most important part of your business plan. It is a brief overview of your bar business concepts, its products and services, potential market opportunity, and competitive advantage.
• Company Overview – Also called the Company Analysis, here, you will provide a detailed description of your bar, its products and other services, and legal structure.
• Industry Analysis – In the Industry Analysis, you will provide an in-depth analysis of the industry in which your bar operates including major players in the local market, market size and growth, and profitability.
• Customer Analysis – In the Customer Analysis, you will identify your potential customers and provide insights into their purchasing habits. You will also create customer segments and discuss your marketing strategy for reaching them.
• Competitive Analysis – In the Competitive Analysis, you will identify your direct competition (other local bars and local businesses that serve alcohol) and provide insights into their strengths and weaknesses. You will also discuss your unique selling point and how you plan to stay ahead of the competition.
• Marketing Plan – The Marketing Plan includes a discussion of your marketing strategy to drive more foot traffic to your bar along with your pricing strategies. You will also provide a sales forecast and budget for your marketing efforts.
• Operations Plan – In the Operations Plan, you will discuss your bar’s day-to-day operations including inventory management, providing exceptional customer service, and creating loyal customers. You will also provide your business goals that you plan to achieve and a budget for your operating expenses.
• Management Team – In this section, you will provide a brief overview of your bar management team, including the bar owner, and their experience in the industry.
• Financial Plan – In this section, you will provide a three-year financial statement for your bar. This will include your income statement, projected balance sheet, and cash flow analysis.

Next Section: Executive Summary >

Bar Business Plan FAQs

What is a bar business plan.

A business plan is a planning tool used to start a new bar and/or grow your thriving bar business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your bar business plan using our Bar Business Plan Template here .

What Are the Main Types of Bars?

There are many types of bars . Most bars are local bars and are known as dive bars or a neighborhood bar.  Sports bars are also a very popular business option. There are also posh and luxurious bars that craft cocktails and offer high-end alcoholic drinks. There are trendy bars that offer the latest industry trends in cocktail and wine offerings. Other bars are location-focused and are unique to the area of town or location that it is in. Many bars also serve food as an option to accompany the alcoholic drink choices.

What Are the Main Sources of Revenue and Expenses for a Bar?

The primary source of revenue for a bar are the alcoholic drink items and food sold at the establishment.

The key expenses for a bar are the costs to purchase the alcohol (beer, wine, liquor) inventory, bar equipment and supplies, overhead expenses for the staff and rent, and any marketing costs the bar chooses to partake in.

How Do You Secure Funding for Your Bar?

Bar businesses are most likely to receive funding from banks. To attract potential investors, you should have an effective bar business plan with a solid business strategy and financial plan. Another option for a bar is to obtain a small business loan to help cover startup costs. SBA loans are a popular option as they offer longer loan terms with lower interest rates. Outside investors, crowdfunding, and/or friends or family are other typical funding options.

What are the Steps To Start a Bar?

Starting a bar business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

• Write A Bar Business Plan - The first step in starting a business is to create a detailed bar business plan for a bar that outlines all aspects of the venture. This should include market research on the local market and potential target market size, information about the services or products you will offer, the bar's concept, marketing efforts, pricing strategies and a detailed financial forecast.  
• Choose Your Legal Structure - It's important to select an appropriate legal entity for your bar . This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your bar business is in compliance with local laws.
• Register Your Bar Business - Once you have chosen a legal structure, the next step is to register your bar with the government or state where you’re operating from. This includes obtaining business licenses and permits (i.e., food service license and/or liquor license) as required by federal, state, and local laws. 
• Identify Financing Options - It’s likely that you’ll need some capital to start your bar or pub , so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 
• Choose a Bar Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your business operations. 
• Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 
• Acquire Necessary Bar Equipment & Supplies - In order to start your bar business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 
• Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your bar . Your marketing strategy should include creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a thriving bar business:

• How to Start a Bar Business
• How to Open a Bar Business

Where Can I Get a Bar Business Plan PDF?

You can download our free bar business plan template PDF here . This is a sample business plan template you can use in PDF format.

How To Open A Bar

1. Decide what type of bar you want to open

Create your concept

2. Identify your business structure

3. Create a business plan

Identify your customers

Analyze your competition

Choose your strategy for overcoming competition, 4. find the ultimate location.

Decide on the size of your establishment

5. Sort out the paperwork

Secure permission from the local government agencies.

Visit the building and safety department., brainstorm and register your bar’s name..

Obtain an Employer Identification Number (EIN)

Can be done online via IRS (Internal Revenue Service) website. You’ll need this number for most of your licenses and permits, and all tax documents.

Visit your local Alcoholic Beverage Control

Obtain food-service license

Complete a Special Occupational Tax with TTB

You will have to register with TTB at the federal level before you begin selling any alcohol. You can get all the information you need on their website.

Start your record book

Settle things with the fire department.

5. Design your bar

Plan your menu

Get a POS system

Choose the right equipment.

6. Stock up your bar

Build up the relationships with suppliers

7. Draft your team

Set up salaries

Find and hire the right candidates

8. Open your bar

9. Promote your bar

You know your place is awesome. Your mom thinks it’s awesome. Now let’s make the whole neighborhood think so as well!

Spread the news via social media

If your bar does not have a Facebook page these days, it is basically non-existent. Make sure you have created a custom page header that fits in the style of your bar; have some cool, high-resolution pictures of the menu and interiors in the albums; opening hours and location on the map stated.

To grow your social media following, offer some small perk for customers who will like your page on FB or follow you on Instagram e.g. free snack.

Invite online influencers to your opening

While attracting journalists and media might be a little tough for a small bar, inviting a few popular online personas (bloggers, vloggers, instagrammers etc) to live cover your big night may bring you the same buzz levels. And attract journalists afterwards.

Offer a complimentary appetizer to first 25 people to share your post

Offer a secret deal to social media followers

Enlist a special drink/food on the menu that any of your followers can order in case they do some social media action e.g. post a photo and tag you; write a special status etc.

Gauge the anticipation in advance

Reach out to your local media, covering lifestyle and restaurant business, in advance offering an exclusive sneak-peek inside your venue.

Start a happy hour

Offer special deals through group buying platforms

Post a discounted deal at sites like Groupon and LivingSocial for a limited amount of time to attract new visitors. If they like your service, they will spread the word for you!

Collaborate with other businesses nearby

Ask a bookstore to nail your posters in exchange for placing their leaflets on your tables. Offer a pizza delivery to give away your cards in exchange for doing same. It’s a win-win option for both parties.

Hold a “beat the clock” contest

Next Friday announce that you’ll start selling beer at half price from 8 pm and will increase the price by 50 cent each hour till midnight.

The next day you’ll be positively surprised by the amount of folks who did try to beat the clock.

Held thematic promotion days

Mondays can be a Champaign days with 10% discount on all bubbly drinks; Tuesdays are all for tequila; Wednesday is a snack day and so on. Your visitors should know that no matter which day of the week they come, they’d always get a special deal. You can also pair drink discounts with food discounts.

10. Run your bar

How to Write a Bar Business Plan + Free Sample Plan PDF

Elon Glucklich

6 min. read

Updated March 17, 2024

Free Downloads: Sample Bar and Brewery Business Plan Templates

From sports bars to neighborhood pubs to upscale cocktail bars—drinking establishments are one of the oldest and most enduring types of businesses.

And the industry is projected to grow nearly 2.5% between 2023 and 2030, leaving plenty of opportunity for new businesses..

But competition in the bar industry can be fierce. You need to know your clientele, competitors, and how you’ll stand out if you want to succeed. Not to mention mapping out all the details of your financials and operations. 

Luckily, you can cover all of that (and more) by writing a business plan.

• What should you include in a bar business plan?

These are the typical sections to consider including in your bar business plan.

• Executive Summary
• Market Analysis
• Marketing and Sales Strategy 
• Operations Plan
• Business Overview

Financial plan

The sections you need will vary depending on why you’re writing a business plan and what you intend to do with it . 

Suppose it’s to manage your operations and not something you expect anyone outside of the business to read. In that case, consider keeping it to a few pages and skipping sections like the executive summary.

If you’re applying for a loan, then you’ll need a more formal plan that includes all the sections listed above.

Check out our step-by-step guide to writing a full business plan for more details.

• The 6 elements of an effective bar business plan

Executive summary

Your executive summary is a short, high-level overview of your entire plan. 

The summary should give readers a sense of what factors will make your bar successful. That could include securing a high-visibility location, partnering with a chef who will oversee meal preparation, or negotiating deals with brewers to get their beers in your bar.

If you’re seeking a bank loan for your bar, the lender will read your executive summary first. In all likelihood, they won’t read any further unless the executive summary grabs their attention. 

So, make it clear and convincing.

Market analysis

The market analysis may be the most important part of your entire business plan. 

It’s where you carefully research and document:

• Who your target customers are
• What they want
• What other establishments they may consider

Start by identifying the size of your market . Focus on the number of potential customers above the legal drinking age in your area. Then, segment these customers based on demographics such as age, income level, and lifestyle preferences. 

Then look into who you will be competing with. List and research other bars as well as indirect competition from restaurants, clubs, and even grocery stores that sell beer or home entertainment options.

Here are a few examples of what this process will look like:

Bar customer segmentation

If you find there are a lot of college students and younger adults near your bar location, you should cater your offerings to their tastes. But if you’re near office buildings or event venues, you may want to focus on older customers with more disposable income.

Will you offer a more diverse drink menu, better food, or a unique theme? Explain how these factors will set your bar apart and attract customers. Or, if your area lacks a certain type of bar, such as a sports bar or a high-end cocktail lounge, describe how filling this gap in the market will serve as your competitive advantage.

Marketing and sales strategy

Your market analysis gives you insights into potential customers. Your marketing and sales strategy is where you use those insights to get those customers in your door.

As you looked around at your competitive landscape, maybe you gained some insight into how your ideal customers discover new bars — through social media, online reviews, local event listings, or word-of-mouth.

Start by developing marketing strategies that are tailored to those channels . Consider tactics like:

• Creating engaging social media content showcasing your unique drinks, events and ambiance.
• Partnering with local businesses or events to increase visibility.
• Introducing special promotions to encourage repeat visits and attract new customers.
• Hosting themed nights or events to create buzz and attract specific customer segments.

In your business plan, document how you will implement these efforts and the resources required. 

Operations plan

The operations section of your business plan is where you detail the day-to-day requirements for running the bar smoothly. Start by describing your physical space and key equipment, such as:

• Beverage dispensing systems
• Glassware and utensils

Specify the types and number of each that you’ll need. Then you can address staffing needs, describing the roles of bartenders, servers, and support staff. Document in your plan that you’ll have a staffing strategy to cover peak hours.

You should also cover inventory management. Describe how you’ll stock alcoholic and non-alcoholic beverages, ingredients for cocktails and food. Be sure to spend time discussing supply chains for sourcing these ingredients.

Document the types of technology you’re using, like point-of-sale systems, inventory tracking, or customer reservation platforms. 

Finally, ensure that your operations plan demonstrates how you will comply with any licensing, health and safety regulations and that you have a plan for ensuring responsible customer behavior.

Business overview

The overview should fill in any gaps the reader may have, including:

• The name of your bar
• When it was founded (if it’s an existing business)
• The inspiration behind the business

You should include the background and qualifications of key team members here. Include their experience in the bar industry and any other experience that’s relevant to their position.

If you’re running an existing bar, discuss previous achievements like revenue milestones, recognitions, or community events you’ve hosted.

You don’t need a deep financial background to run a successful business. But it’s important to develop projections for how you expect the bar to perform. If you’re starting a new bar, consider that you’ll need to pay upfront costs like equipment, supplies, licenses and rent.

Then there are the ongoing costs like employee salaries, marketing, and continuing to keep your shelves stocked.

Making educated guesses about the future will help you determine what’s working, and where you should make adjustments as you run your business.

Include sales and expense forecasts in your plan. The financial section also should include a cash flow statement , income statement , and balance sheet .

Remember, no one knows exactly how the future will pan out — these projections are your baseline for how you think the business will do, and you’ll adjust them over time as you update your plan with actual results.

• Bar business plan templates and examples

To see how other bar businesses have created their plans, browse our free library of bar and brewery business plans . You can also check out our full selection of food and beverage business plans , or our entire library of over 550 business plans across industries.

Download as many as you want in PDF or Word format to help you write your own business plan.

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Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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Small Business Trends

A complete guide to creating a bar business plan, understanding the basics of a bar business plan.

A bar business plan functions as your strategic compass, delineating how your business will function, profit and evolve. Likewise, it is instrumental in securing financing, pinpointing potential obstacles and orchestrating marketing strategies.

What is a Bar Business Plan?

The importance of a business plan for bar businesses.

A potent bar business plan is not merely a perfunctory requirement but a crucial part of your business’s foundation. It aids in articulating your bar’s identity, consolidating your strategy, and projecting future growth.

Essential Elements of a Bar Business Plan

Executive Summary

Company description.

This section encapsulates your bar’s specifics, including its location, ownership structure and unique selling proposition that differentiates it from the competition.

Competitive Analysis

Market analysis, marketing strategy, operational plan, financial projections.

This segment covers sales forecasts, income statements, balance sheets and cash flow statements, providing a realistic financial picture of your bar business.

Mobile Bar Business Plan

Wine bar business plan, cocktail bar business plan, sports bar business plan, using a bar business plan template.

While it offers a comprehensive bar business plan outline, it’s imperative to understand that it’s not a one-size-fits-all solution. Every bar is distinct, with its own unique set of goals, challenges, target audience, and brand personality.

Crafting a Successful Bar Business Plan

Faqs: bar business plan, what are some common mistakes to avoid when creating a bar business plan, is it necessary to hire a professional to write my bar business plan.

Although not a necessity, a professional can impart expert insight and guidance when crafting a bar business plan. However, comprehending the process and actively participating is crucial for the plan’s effectiveness, as no one understands your business better than you.

Can I use the same business plan for different types of bars?

How much does the average bar make a year, what does a business plan look like for a bar, is it hard to start a bar business.

Starting a bar business can be challenging due to factors like high initial investment, stringent regulations and intense competition. However, with a well-crafted business plan, diligent research and strong management, it can turn into a profitable venture. This requires learning many important lessons, from understanding what is a happy hour to learning how to price liquor.

How to Write a Winning Bar Business Plan (+ Template)

Creating a business plan is essential for any business, but it can be beneficial for bar businesses who want to improve their strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the critical elements that every bar business owner should include in their business plan.

Download the Ultimate Bar Business Plan Template

What is a bar business plan.

A bar business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Bar Business Plan?

A bar business plan is required for banks and investors. The document is a clear and concise guide to your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Bar Business Plan

The following are the critical components of a successful bar business plan:

Executive Summary

The executive summary of a bar business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your bar company
• Provide a summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast, among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started and provide a timeline of milestones your company has achieved.

If you are just starting your bar , you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your bar company, mention this.

You will also include information about your chosen bar business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an essential component of a bar business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the bar industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and, if applicable, how do these trends support your company’s success)?

You should also include sources for your information, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a bar business’ customers may include:

• People who live or work near the bar
• People who frequent the area where the bar is located
• People who are looking for a specific type of bar (e.g., a sports bar, dive bar, etc.)
• Business professionals

You can include information about how your customers decide to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or bar services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will differ from competitors and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your bar business via word-of-mouth marketing or by hosting events.

Operations Plan

This part of your bar business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

You also need to include your company’s business policies in the operations plan. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, your Operations Plan will outline the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters and then each year for the following four years. Examples of milestones for a bar business include reaching $X in sales. Other examples include increasing the number of regular customers by a certain amount or adding a few new menu items.

Management Team

List your team members here, including their names and titles, as well as their expertise and experience relevant to your specific bar industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here, you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Bar  

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : Everything you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Bar  

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup bar .

Sample Cash Flow Statement for a Startup Bar  

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Write a Successful Bar Business Plan

Writing a good business plan gives you the advantage of being fully prepared to launch or grow your bar company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-written bar business plan is a must for any new bar owner. It’s a great tool for attracting investors and keeping the company focused.  

Finish Your Bar Business Plan in 1 Day!

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Step By Step Guide To Write A Bar Business Plan

Opening a new bar requires grit and determination - as well as a fantastic bar business plan to act as your roadmap. This document can determine the future success of your new venture, so it’s essential to make it as comprehensive as possible.

But for first-time bar owners, figuring out where to start can be challenging. Our step-by-step guide to writing a business plan will help you pinpoint the finer details to consider when building a thriving bar business.

How to Write a Bar Business Plan in 9 Steps

1. bar overview.

The first step in writing a bar business plan is to establish an overview of the type of bar you want to open. You need a concept and location to shape your business model and create an executive summary for your new venture:

One of the defining aspects of your establishment is its concept and theme, which you’ll need to describe clearly in your business plan. Whether it’s a simple sports bar, speakeasy, or high-end nightclub, have a fully developed idea of what your venue will be and what purpose it will serve.

You also need to consider how to meet market needs. If you’re following trending concepts, you’ll know that roof-top bars and lounges are popular now. Or, perhaps you want your venue to be an activity-based bar that offers an art gallery, board games, or mini-golf?  

Part of your business plan also includes setting your mission statement and goals. These should outline your vision and will influence who invests in your bar. Your mission statement should be a comprehensive statement that details what sets you apart from other bars and should include your company’s values.

It’s important to link your statement to your business concept. You should consider how your values and goals are influenced by what makes your bar unique - including your overall purpose.

Next, you need to propose a location for your bar. Venues close to stores, shopping, centers, and tourist attractions, typically get good visibility and attract a lot of foot traffic. Because of the number of people moving through these areas daily, they also usually offer a decent level of security for your customers.

Another consideration for location is to avoid suburban areas where neighbors might lodge noise complaints. Should this happen, it can mean regulations stipulate earlier closing times for your venue so as not to disturb the peace.  

Finally, look for a space where there’s low competition, and your business can shine. There are plenty of strips crowded with bars and nightclubs. While these might attract a decent amount of foot traffic, you’ll need to work much harder to draw people into your place if one establishment has already made a name for itself.

For this reason, aim to secure a spot with little competition. It could mean having a unique concept bar that overshadows the competition. Or it could mean selecting a space where your type of bar doesn’t yet exist.

Ease of Accessibility

Potential customers need to be able to access your bar easily, or they will go elsewhere. They might drive, take public transport, or use a ridesharing company to travel to your venue. It’s up to you to ensure there are ways and means to get them conveniently to the front door.

Here, you should be looking for a venue where you can offer parking to your patrons. It should also be accessible to ride-hailing services and close to public transport.

2. Customer Overview

No bar establishment would be successful without its customers. As part of your bar business plan, include a profile of the type of customer you hope to attract. Consider who your target market is and how it aligns with your bar concept.

You should also outline your demographic's age, income, and interests. You’ll need this information later when developing marketing strategies for your business.  

3. Management Overview

The next step in your bar business plan is building a team structure. Your crafty bar concept requires talented people to execute it properly.

Your bartenders are the face of your establishment. Essentially, they can make or break your customer’s impression of your venue. When going through the hiring process, you’ll need to consider each individual’s personality, qualifications, experience, and skills.

Ideally, you want at least one experienced bartender who knows the ropes and can help set up operations, deal with bar management, and train the team. They will also be able to help streamline any teething issues that come up as a result of starting a new business.

From the get-go, outline your bartending teams’ possible responsibilities and the duties they’ll need to undertake. This can help set expectations ahead of advertising jobs and interviewing potential candidates.

Bar-backs don’t need as much experience as bartenders or servers as they aren’t in the customer eye as much. But they must be willing and eager to learn. They are essential to keeping everything running smoothly and work closely with the bartender as an assistant.

For this reason, they need a solid foundational knowledge of the industry, ingredients, and barware in general.

Depending on your business concept and operational model, you may or may not need to employ servers. Some high-end venues have servers to reduce the crowd around the bar and deliver drinks to the table. Additionally, you’ll need to hire servers if you offer any food.

When building out your staffing plan, you’ll need to determine where your establishment lands with that requirement. Make a note here to look for bar industry candidates with alcohol training who know how to serve alcohol safely and legally.

4. Drinks Menu Plan

Your drinks menu is your bar’s product. To be successful, it’s essential to get this offering right.

While your beverage list will undoubtedly change over time, don’t neglect to include a sample menu in your business plan. This will give potential investors an idea of what’s in store and possibly help you secure funding.

Descriptions

Your drinks menu is the selling point of your bar business and the star of the show. If you can excite and entice patrons with promises of wonderful flavors, you’ll be onto a gold mine.

So, it’s important to include product descriptions in your menu, particularly for signature drinks. Each listing should detail the ingredients of individual drinks, any garnishes they may come with, and add-ons your customers can choose from.

Beverage Names

A successful bar is only as strong as its product. So, aligning your drinks with your bar’s brand and concept is important. Get together with a mixologist to create one or several signature drinks that will be uniquely your own. Give these drinks names that play to the overall theme of your business.

Product Sourcing

Many establishments lean on particular products as their claim to fame. For example, you might want to be known as a French wine bistro, local brewery, or craft cocktail spot. Decide what you wish your unique story to be and reflect this in your plan for product sourcing.

Of course, sourcing locally is the most sustainable way to go. You can also build relationships with vendors in your community, which can help bring people into your venue.  

Industry Trends

It’s essential to do your research and stay abreast of industry trends. Note what these are in your business plan, as this will help keep customers walking through your doors.

For example, one of the most popular cocktail trends in the bar scene is smoke-infused or smoked cocktails. Some mixologists may also use smoke bubbles to infuse the cocktail with a smoky aroma. This trend has gained fame in the last few years and adds a new twist to the cocktail-drinking experience.

Small Food Menu (Small Bites)

Food and beverages go hand in hand. If you plan a small menu with, say, tapas or easy eats, you can increase your revenue. It will prevent your guests from leaving to find something to eat.

Suppose you don’t want the hassle of food storage and preparation. In that case, consider formulating a partnership with a local eatery or small food business that can deliver a menu of select freshly-made items to your establishment.

5. Licenses

It’s key to plan out your business licenses carefully. If you don’t have the right ones in place, you won’t be able to operate.

Tavern License

When putting together your bar business plan, it’s important to research whether you need a tavern license. It’s a government-issued license for restaurants, bars, or businesses with more than 50% liquor sales.  

Beer and Wine License

If you’re planning on starting a beerhouse or wine lounge, you may only need to apply for a beer and wine license. This will restrict your sales to wine and malt beverages, as you won’t be able to sell hard liquors like spirits. Whether you need to apply for this license depends on your bar's concept.

Health/Food Service License

With a small food menu, you’ll likely need to note on your restaurant and bar business plan to apply for a food service license. It’s a requirement to serve any type of food within your establishment. To obtain a food service license, you’ll need to ensure that your bar follows strict rules and regulations laid out by the U.S. Food and Drug Administration .

Music License

Music is one of the key elements of creating ambiance in a venue. But did you know that streaming music from your digital subscription with Spotify or Deezer is not actually operating within the law? This is true even if you’re playing music through a TV or radio.

The right way to go about this is to pay a Performance Rights Organization (PRO) or music service that will send royalties to the relevant artists. For the most part, this doesn’t apply to bands or performers who play live at your venue.

6. Market Research

Performing market research as part of your bar business plan is key to understanding your opportunities and how to capitalize on them.  

Industry Research

Part of your research should be to determine the market size you can potentially snag. Look at other bars already operating in the area, consider the industry as a whole, and determine what trends are driving it forward.  

Target Market

What needs will your bar solve for your target market? You can find out who they are and what they want by considering the local neighborhood and bar type.

It’s also an idea to look at census data to see how many potential customers within a certain demographic live within a reachable radius of your proposed location.

Market Share and Price Point

When doing your market analysis, consider similar bar businesses that have come before you. What do their successes and failures look like? Why did they crash and burn, or soar to new heights? Take these lessons and figure out how to apply them so your business can succeed.

Furthermore, what will your entry into the market mean for the local community? Are you creating new job opportunities? Or are you going to bring in an unruly crowd of patrons they hope to avoid? Knowing this information will help you be accepted and create connections rather than catastrophes.

Lastly, consider what your ‘competitors’ or other similar industry businesses are charging for their drinks and services. Run a competitive analysis in the area to determine your potential price point and how you can stand out.

7. Bar Marketing

Utilizing a marketing plan in the right way helps you take measured steps to get your establishment in front of potential customers. Here are the strategies to get started:

Create a Brand

The key to starting a successful business - and keeping it open - is to create a memorable brand identity. Your toolbox for promoting your brand should include your logo, colors, and ‘personality.’ Use these in a way that becomes synonymous with your bar, no matter where people interact with it.

Marketing Tools

Besides developing your brand identity, consider the channels you can market on to attract customers. At the very least, it should include your social channels, website, and media influencers.

8. Other Avenues to Increase Revenue

Besides being a bar and welcoming guests who come in with reservations or foot traffic, there are other avenues to increase your revenue.

Hosting events such as karaoke nights, wine tastings, or live music is an excellent way to attract larger crowds to your bar. You are guaranteed certain sales, can charge a cover fee, and get new people walking through the door.

If you go this route, we recommend using event management software to keep everything on track and work effortlessly with your team.

It’s no surprise that all businesses go through an ebb and flow of customer traffic. A great way to increase cash flow during slower periods is to introduce ideas like drink specials and happy hour discounts.

When you’re writing up a business plan, don’t forget to brainstorm ideas for a pre-opening promotion as a way to test the market. This can be as simple as a soft launch or as elaborate as a grand-opening celebration.

9. Financials

An important aspect of your business plan is to outline your potential start-up costs. These, along with the costs of day-to-day business operations, and financial projections, will attract or deter potential investors.

Your business plan should also highlight possible funding options like loans and investment opportunities you have available. Additionally, you’ll need to draw up a break-even analysis to determine how much revenue it will take to turn profits.  

Realizing your dream of owning the hottest bar in town starts with a great business plan. It will need to cover everything from your mission statement to your concept and drinks menu. This will help you build a sturdy management team, hire great employees, and attract people to your venue.

Want to know more about Perfect Venue for event management? Try it free to find out how it can be a fit for your new business.

Have thoughts on the article? Feel free to email us at [email protected] - we'd love to hear it!

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For many with a passion for the nightlife and hospitality, the dream to open a bar remains persistent. If you’re one of them but are unsure about navigating the complexities of the bar industry, don’t have to worry. Writing a business plan is the first step in transforming this aspiration into a tangible reality. A detailed bar business plan will help streamline your vision, ensuring you’re well-prepared to venture into the bustling world of bar businesses with clarity and confidence.

What is A Bar Business Plan?

A bar business plan is a strategic roadmap that outlines your vision and the steps required to bring it to fruition. It encompasses every aspect of your business, from the fundamental business concept down to the intricate details of daily operations. In essence, it’s the blueprint to grow your business and ensure its longevity in a competitive market.

A great business plan doesn’t merely serve as an internal guide; it’s a persuasive tool to attract stakeholders, investors, and partners. It demonstrates how your bar will attract customers, generate profits, and stand out in the crowded nightlife landscape.

One might ask, “What makes a bar business plan unique?” It’s the blend of the universal principles of business, combined with the niche requirements of the bar industry. This includes, but is not limited to, licensing, menu crafting, entertainment provisions, and safety measures.

Given the dynamic nature of the bar industry, it’s important to include not only your immediate goals but also long-term objectives and strategies for adapting to market shifts. With a clear and comprehensive bar business plan, you’re laying a solid foundation for a successful enterprise.

Why A Business Plan Is Important For A Successful Bar Business?

Owning a bar is a dream for many, but transforming this dream into a profitable reality requires meticulous planning and foresight. This is where a business plan plays a pivotal role.

• Clear Vision and Objectives: A business plan helps establish a clear vision and set measurable objectives for your bar. Whether you aim to create a niche cocktail lounge, a bustling sports bar, or any other type of establishment, your business plan outlines the specific steps you’ll take to make your bar the go-to destination for potential customers. It provides direction and keeps all stakeholders aligned with the business’s overarching goals.
• Financial Planning: One of the main reasons business owners create business plans is for robust financial planning. A bar has various financial intricacies, from sourcing ingredients to staffing and marketing expenses. A business plan ensures you’re well-equipped to manage cash flows, investments, and potential financial pitfalls. Moreover, potential investors often request a detailed business plan before committing funds, making this a crucial component for securing necessary capital.
• Operational Efficiency: Every bar operates uniquely, depending on its target audience and theme. However, operational efficiency remains a consistent requirement for all bar owners. A business plan is a plan, after all, and it dives deep into the day-to-day operations, ensuring that every aspect, from supplier agreements to employee shifts, runs smoothly and cost-effectively.

Step-by-step Guide To Write A Bar Business Plan.

Navigating the world of the bar industry can be intricate, and the type of bar you want to open plays a pivotal role in shaping your business plan. Whether it’s a neighborhood bar, a high-end cocktail bar, or a wine bar with live music, each requires a distinct approach. This guide is tailored to help entrepreneurs and business owners create a comprehensive plan, ensuring the grand opening of the bar you dream of is a success.

1. Executive Summary

The executive summary is a concise overview of your entire business plan, acting as a snapshot that encapsulates the essence of your vision and strategy. Typically, it’s about one to two pages long and is placed at the beginning of your business plan, but it’s often written last.

What should you cover in an Executive Summary?

• Introduce your bar business, highlighting what makes your bar unique.
• State your mission and vision, giving clarity to the type of bar you aim to establish.
• Outline the main objectives, from your grand opening to long-term goals.
• Provide a financial overview, offering potential investors a glimpse into projected profits and growth.

2. Bar Description

This section delves into the specifics of your bar, painting a vivid picture of what patrons can expect and how you plan to operate.

What should you cover in the bar description section?

• Talk about your bar concept, whether it’s a wine bar, cocktail bar, or a bar with live music.
• Explain your unique selling proposition – what makes your bar stand out from the competition.
• Detail the operations, from opening hours to the ambiance you intend to create.

3. Market Analysis

This segment identifies and studies your potential customers, the location for your bar, and your competitors, helping you strategize accordingly.

Factors to cover:

• Target market: Define the demographics and preferences of those you plan to cater to.
• Location: An existing bar might already have an established clientele, but a new location needs careful consideration for accessibility, safety, and potential customer traffic.
• Competition: Analyze trends in the bar industry and see how competitors operate, ensuring your offerings are both competitive and unique.

4. Organization and Management

This is the operational backbone of your bar, detailing the structure of your business and the team that will run it.

What should you cover in the organization and management plan?

• Bar ownership information: Are you a sole proprietor, or is this part of a larger partnership or corporation?
• Profiles of your Bar management team: Include bios of key team members, showcasing their expertise and how they’ll contribute to running a successful bar.

5. Sample Menu

This section teases what your bar will offer in terms of food and beverages, acting as a tantalizing preview for potential patrons and investors.

What should you consider when creating a sample menu?

• Menu items: Detail the drinks and possibly accompanying food items.
• Unique Selling Proposition: Highlight specials or unique mixes. For instance, a cocktail bar might focus on signature mixes, while a wine bar could emphasize rare finds.
• Menu Pricing : Don’t forget to address pricing, taking into account costs and desired profit margins.

6. Marketing Strategy

This section delineates how you plan to attract customers to your bar and keep them coming back.

What should you cover in a marketing strategy for your bar business?

• Define your brand: From logo to interior decor, consistency is key.
• This could range from social media campaigns ,loyalty programs, SEO for website, or partnership with local businesses.
• Considering using an  online food ordering system  in your bar
• Create a  digital menu with QR code  to make your menu easy for your customers to access online
• Sales Strategies: Special promotions, events, or partnerships that drive sales.

7. Business Operations

This segment breaks down the day-to-day functioning of your bar, ensuring nothing is overlooked.

BWhat operational issues should you address in your business plan?

• Supply chain: Detail your suppliers for everything from alcohol to garnish.
• Operating hours: Will you have a late-night license? Open only on weekends?
• Staffing: Consider the roles you need to hire for, from bartenders to security.
• Equipment: Everything from the bar counters to the sound system.

8. Financial Plan and Loans

How Much Does It Cost to Start a Bar? Estimating the cost to open a bar is crucial for potential owners. Starting a bar business can cost anywhere from $100,000 to $800,000. The variance in cost can depend on numerous factors. For instance, the physical location of the bar can significantly influence the cost. A prime city center location might require a heftier initial investment than a suburban spot. Additionally, the floor plan and the design aesthetics you plan to implement can also affect the expenses. Furthermore, acquiring the necessary business licenses to operate your bar legally is another cost element that shouldn’t be overlooked. With a lot of bar competition out there, ensuring you have the key elements to include in your initial investment can set you up for success. How Many Ways to Fund Your Bar?

Securing funds to start and grow their bar business is a concern for many aspiring bar owners. While personal savings might be the go-to for some, others might look into bank loans, angel investors, or even crowdfunding campaigns. Exploring all available options can ensure you fund your bar easily and efficiently.

Important Questions to Consider When You Create Your Funding Request

Before approaching potential investors or lenders, it’s pivotal to have a clear plan detailing how the funds will be used. What renovations or modifications are necessary? What will the initial stock and equipment cost? What provisions have been made for operational costs until the bar starts turning a profit? Having these answers ready can make your funding request more compelling.

9. Financial Projections

When diving into the world of bar entrepreneurship, understanding your financial landscape is crucial.

Break-even analysis

It’s an evaluation that helps you determine when your bar will be able to cover all its expenses and start making a profit.

To calculate the break-even point, use this formula: Break Even Point = Fixed Costs / (Price – Variable Costs)

Knowing this can help you write a more convincing business plan, highlighting the viability of your venture.

Projected profit and loss statement

A crucial part of your bar business plan that offers insights into potential profits and losses your business might encounter.

Cash flow analysis

This gives you the key elements to understand how cash moves in and out of your business. By following the bar business plan writing best practices, you can quickly and easily complete these projections. Ensuring that they include a winning strategy will make your financial plan more robust and appealing to potential investors.

Sample Bar Business Plan Template

The following is a comprehensive example of a bar business plan. It’s a great tool to guide you in writing your business plan.

• Mission : To provide a unique drinking experience that celebrates local flavors and promotes community bonding.
• Vision : To be the neighborhood’s top bar destination, known for its distinctive drinks and vibrant ambiance.
• Bar Description : The Urban Vine, a wine-centric bar focusing on regional wines and locally sourced ingredients.
• Costs : Estimated starting cost: $250,000.
• Profits : Projected first-year net profit: $60,000.

2. Description of the Bar

• Bar Concept : A contemporary wine bar featuring local wines and complementary tapas-style dishes.
• Bar Name : The Urban Vine. (Consider using a bar name generator  for more ideas)
• Bar Type : Wine bar with a secondary focus on craft beers.
• Bar Location : 123 Vine Street, Downtown District.
• Order Fulfillment : Table service and bar seating available, with an option for outdoor patio seating.
• Working Hours : Monday to Thursday: 4 PM – 12 AM; Friday & Saturday: 3 PM – 1 AM; Sunday: 2 PM – 10 PM.

3. Menu Offer

• Type of Food and Drink : Wine from local vineyards, craft beers, and tapas-style dishes made from locally sourced ingredients.
• Offer : Regular wine tasting events showcasing new arrivals, paired with chef-special appetizers.
• Unique Selling Point : Every wine bottle tells a local story, giving drinkers a taste of the region’s vineyards.

4. Market and Competition Analysis

• Market Analysis : The Downtown District has a population predominantly comprised of working professionals aged 25-45, making it a prime location for a bar or pub. (Check out this article to understand the distinction between pubs and bars )
• Target Customer : Young professionals and wine enthusiasts looking for a quality drinking experience in a relaxed setting.
• Size of the Target Customer : Approximately 10,000 individuals fitting the profile within a 5-mile radius.
• Competition Analysis : Three other wine bars operate within the district.
• Size of the Competition : Among the competitors, the largest has a seating capacity of 75, while the others can host around 50 patrons each.
• Competitors’ Offer : Basic wine selections, some with occasional live music nights.
• Competitors’ Prices : Average price of $8 per glass of wine and $6 for beer.

5. Investment Plan (Detailed Cost Analysis)

• Leasehold improvements: $80,000
• Furniture & Fixtures: $30,000
• Licensing & Permits: $20,000
• Initial Inventory: $40,000
• Rent: $4,000
• Salaries: $10,000
• Utilities: $1,500
• Miscellaneous: $2,500
• Total Cost : Anticipated first-year expense: $322,000.

6. Financial Forecast

Considering the costs of starting and the projected revenue, breakeven is anticipated by month eight. The first-year projected revenue is $382,000.

• Owner/Manager : Jane Doe – A passionate wine enthusiast with a background in business management.
• Head Bartender : John Smith – Experienced in running a bar, skilled in crafting unique drink experiences.
• Kitchen Staff : A team of three, led by Chef Anna, specializing in tapas dishes.

8. Marketing Plan

Strategies will focus on social media promotions, local partnerships, and hosting events. Ideas like wine-tasting events, collaborations with local vineyards, and monthly themed nights will be implemented. Special offers will be provided for group bookings, early bird timings, and repeat customers.

This business plan template will help prospective bar owners in crafting their unique plan to make their dream bar a reality. With a robust business strategy, The Urban Vine is set to become a renowned establishment in the Downtown District.

Tips For Creating An Effective Bar Business Plan Outline

Crafting a comprehensive bar business plan is pivotal in turning your vision into a successful venture. Here are some insightful tips to help you create an efficient outline:

• Understand Your Niche : Begin by identifying the unique character of your bar. Is it a cozy neighborhood nook or a sophisticated wine bar? The specifics determine the kind of customers you’ll attract and the atmosphere you aim to create.
• Include Comprehensive Details : The following bar business plan components are essential: executive summary, bar description, menu offer, market analysis, investment plans, financial forecasts, team structure, and marketing strategies. Don’t skimp on details; a comprehensive plan showcases your dedication and thoroughness.
• Focus on Your Unique Selling Proposition (USP) : What makes your bar stand out? Maybe it’s an exclusive range of craft beer and wine, or perhaps it’s an innovative theme. Always include this unique factor in your business plan as it’s pivotal for attracting customers.
• Plan Your Offerings : Are you focusing just on drinks or do you also plan to serve a variety of food items? Highlight your primary offerings, be it beer and wine or gourmet appetizers.
• Keep It Adaptable : The bar industry is ever-evolving. Ensure your business plan is flexible enough to adapt to changing trends and customer preferences.
• Seek Feedback : Before finalizing, share your draft with industry professionals or trusted peers. Their insights could help you include in a winning strategy that perhaps you hadn’t thought of.

Frequently Asked Questions

1. what makes a bar profitable.

A bar’s profitability hinges on multiple factors. A strategic location, a unique selling proposition, efficient cost management, and high-quality service all play pivotal roles. Moreover, understanding the preferences of your target audience and adapting accordingly, offering promotions during off-peak hours, and managing overheads effectively can significantly enhance a bar’s profit margins.

2. What is the executive summary of a bar business plan?

The executive summary is a concise overview of the bar’s business plan. It provides a snapshot of the business concept, its objectives, the financial outlook, and primary offerings. This section is particularly crucial for potential investors as it gives them a quick glance at the bar’s potential profitability and operational strategy.

3. How to write a good executive summary for a business plan with example?

When writing an executive summary, it’s essential to be clear and concise. Start with your bar’s mission and vision. Outline the primary objectives, the bar’s USP, and provide a brief financial overview.

Example: “ Sapphire Lounge aims to be the city’s premier wine bar, offering an eclectic range of international wines in a cozy, upscale environment. Located in the heart of the business district, our vision is to provide professionals a relaxing spot to unwind. We project an annual revenue of $500,000, with an initial investment of $150,000. Our unique wine-tasting events and wine-pairing dinners set us apart in the competitive landscape.”

4. Do bars make a lot of money?

The profitability of bars varies based on several factors like location, concept, management, and market demand. While some bars can yield high profits, especially those in prime locations with a unique concept, others might struggle due to competition, mismanagement, or changing market trends. However, with the right strategy, understanding of the target audience, and operational efficiency, bars can indeed be quite lucrative.

Crafting a comprehensive business plan is the bedrock of any successful bar venture. By diligently addressing each section and meticulously detailing all elements you aim to include in your business plan, you’re not only preparing for potential challenges but also envisioning the pathway to success. Remember, a business plan is not a static document; it’s a dynamic blueprint that can evolve with the changing demands of the industry and your clientele. Every decision, from the drinks you offer to the promotions you run, should align with the vision set out in your plan, ensuring long-term growth and sustainability.

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How to Open a Bar in 10 Steps

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If you've ever spent an evening at a fun local bar, you may have wondered about whether you could run your own drinking establishment and be successful. This being said, if you're thinking that you might take that idea and turn it into a reality, you're now probably wondering how to open a bar in your neighborhood.

When it comes down to it, opening a bar is very similar to starting a small business of any kind — with the added aspect, of course, of serving alcohol to customers.

In addition, it's important to note that bars require around-the-clock maintenance, they need significant capital to get started, and they aren’t recession-proof . Therefore, you'll want to make sure you take the time and effort necessary to plan strategically in order to successfully open your own bar.

1. Create a business plan

A business plan is an important document for any kind of small business. When learning how to open a bar, it's practically a requirement.

In short, your business plan is a written plan that takes you from inception to success and will cover your company's value proposition, the location and team, the industry you're entering, your legal structure, products and services, how you plan to market yourself, financial projections and any other additional information that will point you toward long-term growth and profitability.

Overall, this plan will help guide each of the other steps required to open a bar — and therefore, you can refer back to it often and tweak it as necessary as your plans change or pivot.

Plus, you'll not only use your business plan as a roadmap to long-term success, but also to attract investors and funders, as well as to explain your concept to potential partners.

Use our guide to writing a restaurant business plan for more insight into creating a business plan for this specific type of industry.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

2. Find the right location

Just as with any small business, choosing your business location is integral to your short-term and long-term success. If you’re going to be the neighborhood bar, you better know the people you’re serving.

During the planning stage, you can consider contacting your local chamber of commerce to get information on your target market. Are you catering to college students, blue-collar workers, the art crowd, or conservative suburbanites?

You might also choose to work with a real estate agent who is familiar with the area and can help you find the best location at the most affordable price. As renting or buying your storefront will be one of the largest upfront costs associated with opening a bar, you'll want to make sure your real estate agent has experience working with tenants and who can help you navigate the leasing process.

3. Register your business

You can’t run a business without proper registration. The requirements for registering your bar depends on the city and state where your business operates. Like starting any new business, though, you'll want to acquire an employer identification number for tax filing purposes and register your business with local authorities.

You will also need to choose an appropriate business entity type. The four most popular entity types, or legal structures, are:

Sole proprietorship.

General partnership.

Corporations.

Limited liability corporations.

While sole proprietorships or general partnerships are the easiest entities to set up, they don't offer personal liability protection — meaning if someone sues your business, your personal assets may be seized. Since bars tend to have greater legal risks than other businesses, you should consider setting up an LLC or corporation. A business attorney who's experienced in the industry can help you make the best decision for your bar.

4. Choose a business name

Choosing a business name for your bar is a big part of your business’s brand identity.

Your business name should be memorable, represent your business in some way and most importantly, not already registered by a competitor. You can check to see if your business name has already been taken by checking your secretary of state’s website.

You’ll also want to ensure that if you’re making a business website that the domain name hasn’t already been taken. If you plan on marketing your business on social media sites, checking platforms such as Facebook and Instagram is also essential.

5. Obtain licenses and permits

When you're learning how to open a bar, business owners often forget about the hassle that comes with permits and licensing — make no mistake — alcohol is a heavily regulated business.

First, you’ll need a license from the Alcohol and Tobacco Trade and Tax Bureau , or TTB, the entity responsible for enforcing laws “regulating alcohol production, importation and wholesale businesses; tobacco manufacturing and importing businesses; and alcohol labeling and advertising.” This process will take anywhere from six to 12 months to complete. The TTB will need to inspect your business and conduct background checks on directors, officers and owners.

Next, you’ll need to get liquor licenses at the state and local level. If you plan on serving food, you’ll also need a food seller’s permit.

Once you obtain the necessary business licenses and permits, you'll want to be sure your bar is kept up to code as food and alcohol businesses are often subjected to inspection.

6. Find suppliers

Satisfying patrons can either make or break your business. That’s why finding good suppliers for your bar is an absolute must.

When you’re looking for quality suppliers, we suggest connecting with your neighboring bar owners and see if they can refer you to their go-to vendors. We also recommend making a list of all the supplies you want and creating a business budget for them.

Once you have those in check, you can start shopping around. Online suppliers are also another worthwhile option because they generally have discounts, but beware — not all of them are as trustworthy as others. Here are some things you should know about the supplier before doing business with them:

How long they’ve been in business,

References,

Minimum order amount,

Payment terms,

Quality assurance process,

Remember, a supplier should be willing to work with you and understand exactly what it is your business needs. If you have a bad experience with a vendor, don’t be afraid to look for a new supplier.

7. Secure funding

From furnishings to point of sale software to insurance to licenses, getting your business off the ground requires you to think about getting funding for your bar.

How much does it cost to open a bar?

The average cost to open a bar varies widely depending on your location, but typically ranges from $110,000 to upwards of $500,000. Purchasing a pre-existing bar or opening a specialty bar (like a winery or micropub) is a cheaper option, although it can still cost you around $25,000 to get started.

Plus, once your bar is up and running, you'll still have significant ongoing costs for payroll, inventory, rent, insurance and more.

Therefore, if you're wondering how to open a bar with no money — and even if you do have some initial startup capital — you'll need to look into financing options for your venture.

A good place to start is with a business credit card , which can help cover the costs of small- to medium-sized purchases while also helping you earn up reward points.

In addition, you may want to look into startup business loans , short-term loans and other forms of business funding from either your local bank or an online lender. Whatever costs you have and your ability to pay them back should be covered in your business plan.

With the importance of this step, you'll want to take plenty of time to figure out what your startup costs look like and what type of financing will be best for your bar.

8. Design your bar

A bar is meant to be a welcoming space for people looking to unwind or socialize with friends. The same principles of designing a restaurant, therefore, can also be applied to bars.

You'll want to think about the atmosphere and how to efficiently utilize the space. You can set the tone of the bar by playing with lighting and choosing fixtures that differentiate your bar from everyone else’s. You’ll also want to pay close attention to how you design the bar stations; you may want to use several registers so that bartenders aren’t getting in each other's way to ring up customers.

Another major part of designing a bar is the bar tops, which can be thought of as the centerpiece of your bar. Bartops are usually made out of glass, stone, or wood materials, but keep in mind that each material has its drawbacks and benefits.

9. Develop your marketing strategies

Ask any business owner in the bar and restaurant industry: Competition is fierce. People are always searching for the latest and greatest places to eat and drink.

As a bar owner, you need to develop strong marketing strategies if you want your business to last. To bring in new and repeat customers, you should present your bar in the best light possible.

This includes incentivizing customers to write honest reviews on sites such as Yelp, investing in high-quality photos to showcase your drinks and building a stunning website.

10. Pick a reliable POS system

Before you can officially open your bar, you'll need to pick a POS, or point-of-sale, system.

Although there are a variety of options when it comes to bar or restaurant POS systems, the right POS system should (at the very least) help facilitate your business operations. And contrary to popular belief, you don’t necessarily need an expensive POS system. POS systems generally will cost you a monthly fee plus a small fee for credit card transactions.

Therefore, a reliable POS system should help you easily process payments, orders and sales. Three of the best POS systems for bars are:

Square : Good for small businesses.

Toast : Best for midsize businesses.

TouchBistro : Best for high-volume transactions.

LLC Formation

The bottom line

It may look easy, but running around catering to patrons can be physically and mentally exhausting. There are many long days and nights associated with learning how to open and run a bar.

Once you've filed all of the paperwork and licenses, however, opening a bar becomes a little easier. As long as you have a clear vision for the design and work tirelessly to provide excellent customer service, people will come back.

And if they do, you'll be able to take advantage of word-of-mouth marketing — which be one of the best ways to promote your bar in the local community.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

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Back to All Business Ideas

How to Start a Bar: From Concept to Grand Opening

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 24, 2022 Updated on July 1, 2024

Investment range

$64,550 - $120,100

Revenue potential

$274,000 - $1.095 million p.a.

Time to build

1 – 3 months

Profit potential

$55,000 - $219,000 p.a.

Industry trend

Here are the most important factors to consider when you want to open a bar:

• Location and zoning — Find a location that aligns with your target customers. This can be near other nightclubs, entertainment venues, or busy commercial areas. Make sure you are compliant with zoning laws as some regulations affect alcohol sales, noise levels, operating hours, and more.
• Licenses and permits — You will need a liquor license , a permit from the health department if you are serving food, and a permit from the fire department. If you plan to play music in your bar, whether live or recorded, you’ll likely need a music license from organizations like BMI , ASCAP , or SESAC to comply with copyright laws.
• Theme — Choose a theme for your bar to stand out and attract more people. The theme should be relevant and appealing to the local community or the target demographic you want to attract.
• Target customers — Get familiar with the local community and find out what they prefer to tailor your offer better. You can then have themed nights like karaoke or happy hours when most get out of work in your neighborhood.
• Equipment — Consider refrigeration storage, beverage dispensers, bar sinks, and dishwashers. Also consider the sound system, lighting, and even security systems.
• Staff — Hire trained and experienced bartenders, servers, managers, and cleaning crew.
• Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
• Legal business aspects — Register for taxes, open a business bank account, and get an EIN .
• Online presence — Take your business online and create a website where you can promote your services. Get listed on Google Business and Yelp, and encourage reviews.

Interactive Checklist at your fingertips—begin your bar today!

You May Also Wonder:

How profitable is a bar?

Bars can be very profitable, with good margins. The keys are to create a unique concept, make it a fun environment, and provide outstanding customer service.

How should I price drinks in my bar?

Prices for drinks vary. A beer might sell for $6 to $9, wine for $8 – $12 a glass, and fancy cocktails could cost up to $20. Check prices in your area to make sure you’re competitive.

Is owning a bar hard?

Owning and operating a bar can be a costly venture, as it involves covering rent, staff salaries, and unexpected expenses. Additionally, bar owners often work long hours that can extend into the late nights and weekends, including public holidays. Moreover, the bar industry is highly competitive, with a saturated market that presents numerous challenges.

Why do most bars fail?

There are many reasons why bars can fail, but here are some of the most common factors that contribute to bar failure: lack of funds, poor location, over-reliance on alcohol sales, and mismanagement.

How do I attract customers to my bar?

To attract customers to your bar, create an inviting ambiance, offer unique and signature drinks, provide exceptional customer service, host special events and promotions, and utilize online platforms and social media for promotion.

What type of bar is most profitable?

The profitability of a bar depends on factors such as location, target audience, concept, and management. Different types of bars can be profitable based on local market demand and competition.

How can I build a diverse and enticing drink menu for my customers?

To build a diverse and enticing drink menu, cater to different preferences, consider seasonal and local ingredients, balance classic and innovative recipes, provide options for different occasions, and seek customer feedback for continuous improvement.

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a bar has pros and cons to consider before deciding if it’s right for you.

• Fun work — Socialize with patrons every day
• Good money — People spend lots of money in bars
• Get creative — Design your own unique bar concept
• Investment required — Startup costs for a bar are relatively high
• Saturated market — Compete with many established bars

Bar Industry Trends

Industry size and growth.

• Industry size and past growth — The US bars and nightclubs industry was worth $36.3 billion in 2023 after expanding by 2.1% per year since 2018.(( https://www.ibisworld.com/industry-statistics/market-size/bars-nightclubs-united-states/ )) 
• Growth forecast — The global bars and nightclubs industry is projected to grow 3.40% every year until 2030 to reach $124 billion.(( https://www.verifiedmarketresearch.com/product/bars-and-nightclubs-market/ ))
• Number of businesses — In 2023, there were 67,531 bars and nightclubs operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/bars-nightclubs-united-states/ )) 
• Number of people employed — In 2022, the US bars and nightclubs industry employed 589,304 people.(( https://www.ibisworld.com/industry-statistics/employment/bars-nightclubs-united-states/ )) 

Trends and Challenges

• Cannabis beverages are being served more frequently in bars in states that allow them. Cannabis beverages provide a buzz, but the effects wear off faster than alcohol, allowing people to safely drive home.
• Bars are going digital , offering digital payment options, loyalty and rewards programs, and pre-reserving tables. 
• Liability due to overserving is a huge concern in the bar industry, so training employees properly regarding serving levels is of the utmost importance. 
• Many bars have had to raise their prices due to the impact of inflation .

Consumer Spending

• Average consumer spend — The most recent numbers from the Bureau of Labor and Statistics show that the average American consumer spends $583 on alcohol per year.(( https://www.bls.gov/opub/reports/consumer-expenditures/2022/home.htm )) 
• Potential customer base — More than 60% of Americans report that they drink alcohol.(( https://news.gallup.com/poll/509501/six-americans-drink-alcohol.aspx ))
• Average prices — The median amount that people spend when they go to a bar is $30.(( https://www.boozebusiness.com/drinking-in-america-who-what-and-how-much-is-spent )) 

Demand Hotspots

• Most popular states — The most popular states for bar managers are Pennsylvania, New Jersey, and West Virginia.
• Least popular states — The least popular states for bar managers are South Dakota, Nebraska, and Louisiana.(( https://www.zippia.com/bar-manager-jobs/best-states/ ))

What Kind of People Work in Bars?

• Gender — 44% of bar managers are female, while 56% are male.
• Average level of education — The average bar manager has a bachelor’s degree.
• Average age — The average bar manager in the US is 39.1 years old.(( https://www.zippia.com/bar-manager-jobs/demographics/ ))

How Much Does It Cost to Start a Bar Business?

Startup costs for a bar range from $65,000 to $120,000. Costs include the space and its preparation, furnishings, bar equipment, and a liquor license.

If you need to learn bartending skills, you can find a bartending school in your local area or take courses online on a site like Udemy .

You’ll need a handful of items to successfully launch your bar business, including: 

• Tables and chairs

How Much Can You Earn From a Bar Business?

The average bar patron spends $30. Your profit margin after all costs should be about 20%.

In your first year or two, you could get an average of 25 customers a day, bringing in $274,000 in annual revenue. This would mean $55,000 in profit, assuming that 20% margin. As your bar gains popularity, you could have 100 customers a day. With annual revenue of $1,095,000, you’d make a tidy profit of $219,000.

What Barriers to Entry Are There?

There are a few barriers to entry for a bar. Your biggest challenges will be:

• The startup costs of preparing the space for your bar
• Drawing drinkers away from established local bars

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Step 2: hone your idea.

Now that you know what’s involved in starting a bar, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an Opportunity

Research bars in your area to examine their products, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a sports bar or a wine bar.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as craft beers, signature cocktails, burgers, or pizza.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine Your Bar Offerings (Drinks and Food)

Your best bet is to offer a wide variety of alcoholic beverages, including beer, wine, and all types of liquor . You can also make unique signature cocktails that will make your bar stand out.

You could also put a kitchen into your bar and offer food. Studies show that customers stay longer and drink more if they have food.

How Much Should You Charge for Drinks?

Prices for drinks vary. A beer might sell for $6 to $9, wine for $8 to $12 a glass, and fancy cocktails for $10 to $18. Check prices in your area to make sure you’re competitive. Your profit margin after the cost of goods, rent, overhead, and labor should be about 20%. 

Once you know your costs, you can use our profit margin calculator to determine your markup and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify Your Target Market

Your target market will depend on the concept you create. If your concept is designed to attract a younger crowd, you should focus your marketing on TikTok and Instagram. If you create a neighborhood bar, your target market may be a bit older, so you might want to turn to Facebook. 

Where? Choose Your Bar Location

Selecting the ideal location for your bar is paramount to its success. Look for a spot in a vibrant and lively area with high foot traffic, such as a popular downtown district or a bustling nightlife area.

Consider the demographics of the surrounding community and target your desired customer base accordingly, whether it’s young professionals, college students, or a specific niche market.

Additionally, assess the level of competition in the area and aim to differentiate your bar by offering a unique concept or atmosphere. By strategically choosing the right location, you can attract a steady stream of patrons and establish your bar as a go-to destination for socializing and entertainment.

You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Bar Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “bar” or “tavern,”, boosts SEO
• Name should allow for expansion, for example, “Speakeasy Bar” over “The Sports Bar” or “The Cigar Bar”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Discover over 500 unique bar name ideas here . If you want your business name to include specific keywords, you can also use our bar name generator. Just type in a few keywords, hit Generate, and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. However, once you start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Bar Business Plan

Here are the key components of a business plan:

• Executive summary — A concise overview of your bar business, summarizing key points, goals, and financial projections
• Business overview — Detailed information about your bar, including its concept, location, and target audience
• Product and services — Specific details about the drinks and services your bar will offer, emphasizing uniqueness and quality
• Market analysis — Examination of the target market, demographics, trends, and potential for growth in the bar industry
• Competitive analysis — Assessment of competitors, highlighting strengths, weaknesses, opportunities, and threats
• Sales and marketing — Strategies for promoting and selling your bar’s products, including advertising, promotions, and customer engagement
• Management team — Introduction of key personnel, their roles, and relevant experience, showcasing a strong and capable leadership team
• Operations plan — Details on the day-to-day functioning of the bar, covering staffing, suppliers, equipment, and procedures
• Financial plan — Comprehensive financial projections, including startup costs, revenue forecasts, and break-even analysis
• Appendix — Supplementary materials, such as additional data, resumes, permits, or any other documents supporting your business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose Where to Register Your Company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to bars. 

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state. 

Choose Your Business Structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your bar will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General partnership — Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corporation — Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corporation — This refers to the tax classification of the business but is not a business entity. An S Corp can be either a corporation or an LLC , which just needs to elect this structure for tax status. In an S Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number or EIN. You can file for your EIN online, or by mail/fax. Visit the IRS website to learn more. Keep in mind that, if you’ve chosen to be a sole proprietorship, you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans — This is the most common method but getting approved requires a rock-solid business plan and a strong credit history.
• SBA-guaranteed loans — The Small Business Administration can act as a guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding — Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal — Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a bar business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Bar Business Licenses and Permits

Starting a bar business requires obtaining a number of licenses and permits from local, state, and federal governments.

You’ll need a liquor license for your bar. If you serve food, you’ll also need:

• Food service license
• Food handler’s permit
• Building health permit

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your bar business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business property — Provides coverage for your equipment and supplies.
• Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation — Provides compensation to employees injured on the job.
• Property — Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto — Protection for your company-owned vehicle.
• Professional liability — Protects against claims from clients who say they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential Software and Tools

Being an entrepreneur often means wearing many hats — from marketing to sales to accounting — which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as  Restaurant365 ,  lightspeed , or  toast , to manage your menus, inventory, schedule, and invoices.

• Popular web-based accounting programs for smaller businesses include Quickbooks , FreshBooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences of filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop Your Website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.

However, people are unlikely to find your website unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Local SEO — Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Viral cocktail challenges — Initiate social media challenges that encourage customers to post their own cocktail-making videos, increasing engagement.
• Mixology masterclasses — Stream live sessions teaching signature cocktail recipes to invite participation and share expertise.
• Bartender battles — Organize and stream competitions among bartenders, allowing online viewers to vote and interact.
• Themed bar nights — Regularly change bar themes to create fresh and exciting experiences for patrons, maintaining interest and anticipation.
• Signature drink contests — Engage customers by letting them create and name new drinks, with the winning selections featured on your menu.
• Brewery and distillery partnerships — Collaborate with local producers for exclusive tasting events and special edition drinks, enhancing product variety.
• Arts and music collaborations — Utilize your space for performances by local artists and musicians, attracting diverse crowds and supporting the arts community.
• “Happy Hour” loyalty cards — Implement loyalty cards that offer special discounts during happy hours to encourage repeat visits.
• VIP experiences — Create a premium membership program that provides exclusive access to private events and priority bookings.
• Neighborhood partnerships — Develop a “bar crawl” experience in collaboration with neighboring bars to promote exploration of the local bar scene.
• Collaborative ads — Partner with local event organizers for co-branded advertising campaigns, expanding reach and pooling marketing resources.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Today, customers are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your bar meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your bar business could be: 

• The best local beers at your new neighborhood bar
• Half-price happy hour every day from 4 to 6
• Fine wines and delicious tapas

You may not like to network or use personal connections for business gain but your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a bar business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in bars for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in bars. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a bar business include:

• Bartenders — making and serving drinks
• Servers — serving food and drinks to tables
• General manager — scheduling, ordering, accounting
• Marketing lead — SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Bar — Start Making Money!

For many, owning a bar is living the dream — working in a fun environment and socializing all day. Now that bars are back, it’s a great time to get in on a thriving industry. If you’ve got a creative concept and a passion for pleasing people, you could open your own bar and build it into the next Cheers! 

Now that you know what it takes, it’s time to launch your bar and soon toast your own success.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Bar Name
• Create a Bar Business Plan
• Register Your Business
• Register for Taxes
• Fund Your Business
• Apply for Bar Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Bar — Start Making Money!

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BUSINESS STRATEGIES

How to create a bar business plan

• Annabelle Amery
• 11 min read

Starting a business can be an exciting and rewarding venture. However, it requires careful planning and strategizing to ensure its success. One crucial aspect of this planning process is creating a comprehensive and clear business plan . This holds true for any type of business , including a bar business.

A bar business plan is a written document that outlines the goals, strategies and financial projections for starting and operating a bar establishment. It serves as a roadmap for your team, guiding you through the various stages of setting up and managing your bar business.

Looking to take your bar business online by making a website ? Take Wix’s website builder for a spin.

How to create a bar business plan in 6 steps

Writing a comprehensive and clear business plan is crucial when starting any business. It provides a roadmap for success and helps entrepreneurs make informed decisions. A well-structured bar business plan typically consists of six main parts:

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

The executive summary is an overview of your bar business plan. It should concisely summarize the key points and highlight the most important aspects of your business. This section is typically written last, but it appears at the beginning of the plan.

To write a clear executive summary for a bar business, include the following elements:

Brief description of your bar concept and its unique selling proposition

Overview of your target market and the demand for your services

Summary of your financial projections, including revenue and profit estimates

Outline of your marketing and advertising strategies

Mention of any key partnerships or collaborations

Example of an executive summary

“XYZ Bar is a trendy, upscale establishment located in the heart of downtown. Our mission is to provide an unforgettable experience for our patrons by offering innovative cocktails, live entertainment and a vibrant atmosphere. With a focus on quality ingredients and exceptional customer service, we aim to become the go-to destination for young professionals seeking a sophisticated nightlife experience. Our projected revenue for the first year is $1 million, with an expected profit margin of 20%. We will implement targeted marketing campaigns through social media platforms and collaborate with local influencers to build brand awareness. XYZ Bar has secured partnerships with renowned mixologists, ensuring our beverage offerings are second to none.”

02. Business and domain names

Choosing the right business name for your bar is essential for building brand awareness and trust among your target audience. The name should reflect your bar's concept and resonate with your target market. To generate name ideas, you can use a business name generator —or specifically a restaurant name generator —for inspiration.

When selecting a domain name for your bar business, keep it short, memorable and easy to spell. Include relevant keywords where possible and avoid hyphens or numbers. Make sure that the name is available and can be registered—follow the necessary steps for registering your business .

03. Market analysis and research

Including a market analysis and research section in your bar business plan is crucial for understanding the competitive environment and developing effective business strategies. Conduct thorough market research to identify your target market, their preferences and the demand for your services. Analyze your competitors to understand their strengths, weaknesses and pricing strategies.

Key elements to include in this section:

Overview of the target market demographics and psychographics

Analysis of competitors, including their offerings and pricing

Description of your unique selling proposition and how you differentiate from competitors

Outline of your marketing strategies, such as social media marketing, partnerships and events

04. Operations plan

The operations plan outlines the logistical aspects of running your bar business. It includes details about the location, premises, equipment and staffing needs.

In this section, address the location of your bar and why it was chosen. This can include details about the premises including its layout and design. Then, incorporate necessary equipment and furnishings. You’ll also want to include staffing requirements, such as the number of employees, including their roles and responsibilities.

05. Marketing and advertising plan

The marketing and advertising plan outlines your strategies for promoting your bar business and attracting customers. It should include a mix of online and offline marketing tactics that are most effective for reaching your target audience. An effective way to market your bar business could be through social media marketing, a strategy that worked for Wix user, Strathcona Spirits ,

Our primary focus has always been social media—we use Instagram, Twitter, and Facebook. The main thing for us, on social media, our website, and even the experience in the shop, is to be as inclusive as possible. Keeping the language of our spirits as simple as we can. Being transparent with our barrel routine and how things are aged. Using terms that are unnecessary, or trying to overcomplicate things, excludes people, and we would never want to do that. Our spirits are for everyone. Andrea Shubert, Co-founder Strathcona Spirits.

You can consider also including here an overview of your branding strategy, including your logo, colors and tone of voice. If you don’t have a logo yet, check Wix’s restaurant logo maker for inspiration.

Then, think about which marketing strategies to lead with. You can additionally consider traditional marketing tactics—such as print ads, radio spots or billboards—if applicable.

06. Financial plan

The financial plan is a pivotal aspect of a business plan, offering a detailed roadmap of how the bar business will be funded, its projected revenue and expenses, and the anticipated time frame for achieving profitability. This section provides stakeholders with crucial insights into the financial feasibility and sustainability of the bar business. It will likely include:

Startup costs and funding sources: Starting a bar business involves various upfront costs that need to be accurately estimated for proper financial planning. These costs encompass elements like lease or purchase of the premises, renovation and interior design, licensing and permits ( how to start an LLC and cost, for example), furniture and fixtures, bar equipment, initial inventory, marketing and staff training. Funding for these startup costs can come from a combination of sources, including personal savings, business loans, grants or investments from partners or stakeholders.

Revenue projections: Revenue projections provide a forecast of the expected income over a specific period, typically the first few years of the bar's operation. These projections should be based on careful market research, competitor analysis and realistic expectations.

Operating expenses: Operating expenses encompass costs associated with running the bar business on a day-to-day basis. These include rent or mortgage payments, utilities, staff salaries, marketing and advertising expenses, maintenance and repairs, supplies, insurance and other overhead costs.

Profit and loss projection: The profit and loss projection, also known as the income statement , provides an overview of the business's revenue, expenses and net profit or loss over a specific period. It offers insights into the financial health of the bar business and its potential profitability.

Timeframe for profitability: The timeframe for achieving profitability in a bar business can vary significantly based on factors such as location, target market, marketing strategies and operational efficiency. Typically, bars aim to reach profitability within the first year or two of operation.

Break-even analysis: The break-even point is the level of revenue at which the bar business covers all its expenses, resulting in zero net profit or loss. This is a critical milestone as it indicates the point at which the business starts generating profits.

Example of a break-even analysis calculation:

Fixed costs (annual): total fixed costs (rent, utilities, salaries, etc.)

Average revenue per month: estimate average revenue generated per month

Break-even point: fixed costs / average revenue per month

Bar business plan templates

To help you get started, here are two draft business plans for hypothetical bar businesses. Customize these templates according to your specific concept, target market and goals—and create a plan that’s all your own.

Bar business plan template 1: Upscale cocktail lounge

The Upscale Cocktail Lounge is a sophisticated bar concept located in the heart of a bustling city. Our mission is to provide an elevated drinking experience through expertly crafted cocktails, a curated selection of spirits, and a refined ambiance. With a target market of young professionals seeking upscale socializing environments, we aim to become the go-to destination for after-work drinks and weekend gatherings. Our projected revenue for the first year is $1.5 million, with an expected profit margin of 25%. We will implement marketing strategies targeting our ideal customers through social media platforms and collaborate with local influencers to build brand awareness.

Company name and domain name

The company name for this upscale cocktail lounge is "Elevate Lounge." The domain name chosen is www.elevatelounge.com, which reflects the concept's goal of providing an elevated experience to its customers.

Marketing analysis and research

Target market: Young professionals aged 25-40 with disposable income seeking upscale socializing experiences.

Competitors: Analyze other upscale cocktail lounges in the area, their offerings, pricing and target demographics.

Unique selling proposition: Highlight the unique features of Elevate Lounge that set it apart from competitors, such as signature cocktails or exclusive partnerships.

Marketing strategies: Develop a comprehensive marketing plan that includes social media marketing, influencer collaborations and hosting exclusive events to attract the target audience.

Location: Choose a prime location in the city center with high foot traffic and proximity to other upscale establishments.

Premises: Design a sleek and modern interior with comfortable seating arrangements and a well-stocked bar.

Equipment: List the necessary equipment for the bar, including high-quality glassware, cocktail-making tools and refrigeration units.

Staffing: Determine the number of bartenders, servers and support staff required to provide excellent service to customers.

Operating hours: Set operating hours based on customer demand and local regulations.

Target audience: Define the target audience more specifically, such as young professionals in specific industries or neighborhoods.

Branding strategy: Develop a unique brand identity with a logo, color scheme and tone of voice that aligns with the upscale nature of the lounge.

Social media marketing: Utilize platforms like Instagram and Facebook to showcase the ambiance, signature cocktails and upcoming events.

Influencer partnerships: Collaborate with local influencers who resonate with the target audience to promote Elevate Lounge through sponsored posts or event appearances.

Exclusive events: Organize special events like mixology workshops or live music nights to attract new customers and create buzz around the lounge.

The financial plan outlines how Elevate Lounge will be funded initially and its timeframe for reaching profitability. It includes projected revenue, expenses and cash flow for the first year, as well as a break-even analysis. Additionally, it should address potential funding sources, such as personal investment, loans or partnerships.

Bar business plan template 2: Neighborhood sports bar

The Neighborhood Sports Bar is a casual bar concept located in a residential area with a strong sense of community. Our mission is to create a welcoming environment where locals can gather to watch sports, enjoy good food and drinks and socialize. With a target market of sports enthusiasts and neighborhood residents, we aim to become the go-to spot for game nights and community events. Our projected revenue for the first year is $800,000, with an expected profit margin of 15%. We will implement marketing strategies targeting the local community through direct mail campaigns, partnerships with local sports teams and hosting trivia nights.

The company name for this neighborhood sports bar is "The Game Zone." The domain name chosen is www.thegamezonebar.com, which reflects the bar's focus on providing a space for sports enthusiasts to gather and enjoy their favorite games.

Target market: Sports enthusiasts of all ages residing in the local neighborhood.

Competitors: Analyze other sports bars in the area, their offerings, pricing and target demographics.

Unique selling proposition: Highlight the unique features of The Game Zone, such as multiple large screens for game viewing or a menu featuring specialty burgers named after local sports teams.

Marketing strategies: Develop a comprehensive marketing plan that includes direct mail campaigns targeting local residents, partnerships with local sports teams for cross-promotion and hosting regular trivia nights or game-watching parties.

Location: Choose a location in close proximity to the target neighborhood and easily accessible for residents.

Premises: Design a casual and comfortable interior with ample seating, multiple large screens for game viewing and a well-stocked bar.

Equipment: List the necessary equipment for the bar, including audiovisual systems, kitchen appliances and draft beer systems.

Staffing: Determine the number of bartenders, servers, kitchen staff and support staff required to provide excellent service during peak hours.

Operating hours : Set operating hours based on game schedules and customer demand.

Target audience: Define the target audience more specifically, such as sports enthusiasts in a specific age range or fans of particular sports teams.

Branding strategy: Develop a brand identity that reflects the casual and community-focused nature of The Game Zone.

Direct mail campaigns: Send targeted direct mail campaigns to local residents to promote special offers, game nights or trivia events.

Sports team partnerships: Collaborate with local sports teams to offer exclusive discounts or host pre-game events for fans.

Trivia nights and game-watching parties: Organize regular trivia nights or game-watching parties to attract customers during popular sporting events.

The financial plan outlines how The Game Zone will be funded initially and its timeframe for reaching profitability. It includes projected revenue, expenses and cash flow for the first year, as well as a break-even analysis. Additionally, it should address potential funding sources, such as personal investment, loans or partnerships.

Why create a bar business plan? Top benefits to consider

Creating a business plan is important for several reasons. First and foremost, it provides a clear vision and direction for the new venture. Beyond this, it helps you to:

Attract funding: A well-crafted business plan is essential for attracting investors and securing funding for your bar business. Potential investors and lenders want to see a clear and comprehensive plan that demonstrates the viability and potential profitability of your venture. By showcasing your market research, financial projections and growth strategies, you can instill confidence in investors and increase your chances of raising money for your business .

Outline resource requirements: One of the primary benefits of writing a business plan is gaining a thorough understanding of the resources, supplies and staff required to start and operate your bar business. By conducting detailed research and analysis, you can identify the necessary equipment, licenses, permits and staffing needs.

Plan more strategically: A business plan provides a roadmap for success by outlining your goals, strategies and tactics. It helps you define your target market, understand customer preferences, and develop effective marketing strategies.

Identify potential challenges: Writing a business plan forces you to consider potential challenges and risks that may arise during the course of your bar business. By conducting a thorough SWOT (strengths, weaknesses, opportunities, threats) analysis, you can identify potential obstacles and develop contingency plans to mitigate them.

Monitor progress: A business plan serves as a benchmark for measuring your bar business's performance. By regularly reviewing your financial projections, sales targets and marketing strategies, you can track your progress and make necessary adjustments.

Enhance collaboration and communication: A comprehensive business plan serves as a communication tool for stakeholders, employees and potential partners. It clearly conveys your vision, mission, and objectives to all parties involved. Additionally, it facilitates collaboration by providing a shared understanding of the business's direction and goals. This enhanced communication fosters teamwork and alignment among all stakeholders.

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How to Write a Bar Business Plan + Free Template

Bar businesses are growing. Especially due to the increase in alcohol consumption and nightlife culture amongst the younger population.

But all of us know that a bar business is much more than just alcohol. It is also a good profession for people who like to socialize, talk to new people, and are lively and cheerful more often than not.

And the best part is no industry giant holds a huge chunk of the market in this business.

Sounds good, right? But before you go ahead and fulfill your long-standing dream of having a bar, you’ll need a bar business plan and we are here to help you with that, Here’s a quick overview of the industry.

Industry Overview

The bar industry stood at a massive market value of 25.09 billion dollars in the US in 2021. And is going through a phase of rapid recovery after being hit by the coronavirus pandemic.

The bar industry covers the broad spectrum of nightclubs, bars, and other such establishments that serve alcohol and snacks. The revenue for nightclubs also comes mainly from the sales of alcohol.

Increased acceptance of alcohol and an increase in disposable income of the younger population, mainly the millennials has led to the growth of the bar business.

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Things to Consider Before Writing a bar business plan

Get all the necessary licenses.

As a bar business staying on the right side of the law is more important than anything. Having all the necessary licenses and permits lets you run your business smoothly and without any chaos.

Here’s a list of licenses that you’ll need:

• Liquor License
• Food Safety Permit
• Fire Safety Certificate
• Music license

You might need more depending on the laws of your state and locality. Get all the necessary permits to avoid hassles as well as to ensure your customers and your own safety.

The location matters ( A lot )

In the case of a bar business, the location is usually the whole and soul of your business. The right location would be a preferred hangout spot for your target audience, easy to access, and not overly crowded.

The factor that the locality has your target audience or not would be a major deciding factor in your bar business’s success.

Know your target audience and their preferences

Knowing about your target audience gives your business the head start it deserves. Study everything from what your target audience prefers when it comes to food and beverages, what additional services they expect, What kind of vibe they prefer, and obviously, what is the right location to cater to them.

Have a unique theme

A major aspect of the bar industry is that it doesn’t really have any big players but several small businesses that compete with each other. And if you want to stand out amongst all the hustle and bustle it is important to have a unique theme that appeals to your target audience.

How Can a Bar Business Plan Help You?

A business plan helps you develop the right perspective toward the industry you plan on entering.

It not only helps you with market analysis and management but also acts as a guide in your business journey.

If you plan your business well, you get an edge over poorly managed entities and unaware owners who did not conduct market research before starting the business.

Specifically, when starting a bar business, a business plan helps you in making cost-effective decisions when you begin, so you don’t have to worry about haphazard finances later.

And as you know the benefits of having a business plan now, let’s discuss how to write an effective plan .

How to write an effective bar business plan?

Although you can write a business plan on your own from scratch, it is always good to get a little guidance when writing one.

Thanks to technology, there are several options available, and you can choose the one that fits the best for you.

You can either go to a business consultant, design your plan based on a predesigned template, or get a customized plan for your business through an online business plan software without going anywhere.

Chalking Out Your Business Plan

All businesses like bars, pubs, lounges, and nightclubs come under the aegis of the bar business. All of these are drinking places that primarily serve and prepare alcoholic beverages.

Moreover, it is an industry where there are no market leaders who hold a big share in the industry’s value, but small fragmented units amongst whom the industry’s value is distributed.

Now it might look like a lucrative business to enter, but a lot of bar businesses fail due to bad financial and employee management. They end up overspending and working their employees to the point of exhaustion.

You don’t have to worry about it though, the above problem has a quick and easy solution: A business plan.

Yes, you heard it right, a bar business plan can help you solve all the management and planning-related problems.

If you are planning to start a new bar business , the first thing you will need is a business plan. Use our sample Bar business plan created using upmetrics business plan software to start writing your business plan in no time.

Bar Business Plan Outline

This is the standard bar business plan outline which will cover all important sections that you should include in your business plan.

• Business Overview
• Mission Statement
• Guiding Principles
• Keys to Success
• Start-Up Summary
• Location and Facilities
• Products/Services Description
• Competitive Comparison
• Product/Service Sourcing
• Inventory Management
• Future Products/Services
• Market Size
• Industry Participants
• Market Share
• Applebee’s Pinto’s Bar and Grill 6706
• Cococabana Bar & Grill
• Flanigan’s Seafood Bar & Grill
• Market Segments
• Market Tests
• Market Needs
• Market Trends
• Market Growth
• Positioning
• SWOT Analysis
• Strategy Pyramid
• Unique Selling Proposition (USP)
• Competitive Edge
• Positioning Statement
• Pricing Strategy
• Promotion and Advertising Strategy
• Marketing Programs
• Sales Forecast
• Sales Programs
• Exit Strategy
• Organizational Structure
• Management Team Gaps
• Personnel Plan
• Important Assumptions
• Startup Expenses
• Startup Assets
• Source And Use Of Funds
• Profit & Loss Statement
• Balance Sheet
• Cash Flow Statement

Before you get started with writing your business plan, let’s understand each section in detail:

1. Executive Summary

An executive summary is the most important document of your business plan. It is crucial to get you funded as a business as it sums up everything your business stands for.

Chances are that the investors might not even read beyond this section.

Therefore, when you write it make sure you sum up your business idea and its functions properly.

2. Business Overview

In this section, you will include an overview of all the chief needs of your business.

In a bar business plan, the chief aspects would include the location and its accessibility, the legal rules regarding alcohol followed by the area as well as the primary legal formalities involved in running a bar.

3. Products and services

This section includes all the products and services you’ll offer.

Resources for getting the products, especially in the case of a bar business the formal procedures involved in acquiring alcohol should be included.

It is also good to note down the differentiating factor between your and your competitor’s product.

4. Market analysis

Market analysis is another crucial aspect of a business plan. It comes in handy while assessing strategies and techniques that work and do not work by analyzing your competitors.

It also helps you get information about the size of the market and its growth potential.

It helps you to know your target audience and segment of the market that forms the majority of your client base.

5. Marketing strategy and implementation

Based on market analysis, next up you’ll formulate your marketing strategy.

While formulating your marketing strategy you should always keep your unique selling point and target market in mind.

Apart from that your positioning in the industry is also a critical aspect of your strategy implementation.

In addition to all of the above, advertising strategy is an aspect a bar business has to pay special attention to, as a direct advertisement of alcohol isn’t allowed on various media platforms.

6. Organizational Management

This step is also especially important in a bar business plan to avoid overworking employees, create good and respectful relations amongst the team, and have strong teamwork.

You should also include various roles and responsibilities of different people in your organization as well as ways of tracking their performance in this section.

7. Financial Plan

A financial plan is important because it prevents you from overspending and optimally distributes your cash flow amongst various segments of your business.

Apart from that in a financial plan, you can also carry out an analysis of your financial history as well as  funding options for your business.

The above-mentioned order can help you write a well-rounded plan. But most importantly, while starting a bar business it is important to keep the legalities involved in mind.

You should always watch out for the current and potential alcohol laws that would have an impact on your business and frame your business strategy accordingly.

Hence, you should frame a business plan that is flexible and dynamic and thus, can help you succeed in the bar and pub industry.

Download a sample bar business plan

Need help writing your business plan from scratch? Here you go;  download our free bar business plan pdf  to start.

It’s a modern business plan template specifically designed for your bar business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

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Bar Business Plan Summary

A bar business can be extremely successful and smooth if you go about it with a business plan.

A business plan helps you keep all the facets from legal to financial ones in mind while running a bar business, thus making the process easier and quicker.

After getting started with Upmetrics , you can copy this sample bar business plan template into your business plan, modify the required information, and download your bar business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to Start a Bar Step by Step

Thinking about starting a bar? You’re not alone. Many people dream of owning a place where friends gather, drinks flow, and good times roll.

But before you dive in, you need to know what type of bar fits your vision. Different bars cater to different crowds and offer unique experiences.

Let’s explore the main types of bars you might consider.

Types of Bars

A bar is an establishment that serves alcoholic drinks. The type of bar you choose will define the atmosphere, clientele, and overall vibe of your place.

Brewpubs serve their own craft beers. These establishments often brew beer on-site, offering a unique selection that you won’t find in other bars. Customers come for the fresh, locally-made beer and often stay for the relaxed, community-focused atmosphere. Brewpubs usually pair their beers with a menu of pub-style foods, enhancing the overall experience. If you’re passionate about brewing and want to share that passion with others, a brewpub might be the right choice for you.

Nightclubs focus on music and dancing. These venues are all about high energy, loud music, and a lively crowd. Nightclubs often feature DJs, live bands, and dance floors designed to keep people moving all night long. The decor is usually modern and flashy, with lighting and sound systems that create an immersive experience. If you love the nightlife and want to create a space where people can dance and have fun, consider opening a nightclub.

Dive bars offer a casual, unpretentious atmosphere. These bars are often characterized by their laid-back vibe, affordable drinks, and a no-frills approach. Dive bars attract a diverse crowd looking for a relaxed place to hang out without any pretense. The decor is usually simple, and the focus is on creating a welcoming environment where everyone feels at home. If you want to create a neighborhood spot where people can unwind and enjoy a drink without any fuss, a dive bar could be the way to go.

Speakeasies

Speakeasies are Prohibition-era themed bars. These establishments recreate the secretive, exclusive feel of the 1920s speakeasies, often with hidden entrances and vintage decor. The drinks menu typically features classic cocktails made with high-quality ingredients, and the atmosphere is intimate and sophisticated. Speakeasies appeal to customers looking for a unique, nostalgic experience. If you’re drawn to the glamour and mystery of the Prohibition era, opening a speakeasy might be your ideal path.

Each type of bar offers a different experience and attracts a different crowd. Think about what kind of atmosphere you want to create and who you want to attract. Your choice will shape every aspect of your bar, from the decor to the drinks menu to the overall vibe.

TIP: Get insights from other business owners on why start a business and learn from their experiences.

Benefits of Opening a Bar

Opening a bar is not just about serving drinks; it’s about creating a space where people can come together and enjoy themselves. But let’s be real, the journey comes with its own set of worries.

Be Your Own Boss

Opening a bar allows you to make all the decisions. You get to choose the concept that excites you, whether it’s a cozy neighborhood pub or a trendy cocktail lounge. You decide the menu, selecting the drinks and food that best represent your vision. Hiring and managing staff also falls under your control, giving you the chance to build a team that aligns with your values and goals. This level of autonomy can be incredibly rewarding, as you shape every aspect of your business.

TIP: Learn how to recruit bar staff efficiently to build a competent and reliable team.

Potential for High Profits

Alcohol sales often come with high profit margins. Drinks, especially cocktails and specialty beverages, can be sold at a significant markup. This potential for high profits makes the bar industry appealing. With effective management and a good understanding of your market, you can maximize these margins. Regular promotions and events can also drive sales, increasing your revenue. The key is to balance quality and cost, ensuring your customers feel they are getting value while you maintain healthy profits.

Social Aspect

Running a bar provides a unique opportunity to meet new people and build relationships. Your establishment can become a local hotspot where regulars feel at home and new patrons feel welcomed. This social environment fosters connections, both personal and professional. As the owner, you become a central figure in this community, creating a network that can support your business in various ways. Hosting events and themed nights can further enhance this social aspect, attracting diverse groups and keeping the atmosphere lively.

Creative Expression

A bar offers a platform for creative expression. You can develop unique drinks that showcase your creativity and stand out from the competition. The decor and ambiance of your bar also reflect your personal style, from the lighting and furniture to the music and overall vibe. Additionally, you can plan special events that highlight your creativity, such as themed parties, live performances, or mixology classes. This creative freedom not only makes your bar unique but also keeps it exciting for your customers.

Efficient Management

To manage a bar successfully, it’s essential to streamline operations and reduce administrative burdens. Tools like the Homebase mobile management app allow you to oversee your business on the go, ensuring flexibility and efficiency.

Auto-convert timesheets into wages, catch errors, pay your team, and file taxes all in one place.

How to Create a Bar Business Plan

Creating a bar business plan is your roadmap to success. It helps you clarify your vision and provides a structured approach to making your bar a reality.

Describe Your Bar Concept and Target Market

Start by defining your bar concept. Are you opening a cozy brewpub, a vibrant nightclub, a laid-back dive bar, or a nostalgic speakeasy? Your concept sets the tone for everything else. Next, identify your target market. Who are your ideal customers? Consider their age, lifestyle, and preferences. For example, a speakeasy might attract an older, more sophisticated crowd, while a nightclub appeals to younger patrons looking for a lively night out.

Detail Your Drinks Menu and Pricing

Outline your drinks menu. Include a variety of options that align with your concept. For a brewpub, list your craft beers and any seasonal specials. A nightclub might focus on cocktails and premium spirits. Dive bars often feature affordable beers and simple mixed drinks. Speakeasies can offer classic cocktails with a modern twist. Pricing should reflect your target market and location. Competitive pricing attracts customers, but ensure your prices cover costs and generate profit.

Outline Your Marketing and Financial Strategies

Develop a marketing strategy to attract and retain customers. Use social media to promote your bar and engage with potential patrons. Plan special events like live music, trivia nights, or themed parties to draw in crowds. Collaborate with local businesses for cross-promotions. Financially, create a budget that includes all startup costs, such as renovations, equipment, and initial inventory. Forecast your monthly expenses and expected revenue. This helps you understand how much capital you need and when you can expect to break even.

Project Startup Costs and Revenue

List all startup costs in detail. Include expenses for leasing or purchasing a location, renovations, furniture, bar equipment, initial inventory, and marketing. Don’t forget to budget for permits and licenses. Estimate your monthly operating costs, including rent, utilities, staff salaries, and supplies. Project your revenue based on your pricing and expected customer volume. This projection helps you determine if your business is financially viable and guides you in securing funding from investors or lenders.

TIP: Efficiently create employee schedules to ensure smooth operations and cost management in your new bar.

Licenses and Permits Needed to Open a Bar

Navigating the legal landscape can be daunting, but understanding what you need helps you avoid costly mistakes.

Business License

A business license allows you to legally operate your bar within your city or county. You must apply through your local government office, providing details about your business structure, ownership, and location. Fees vary depending on your location and the size of your business. This license ensures your bar complies with local regulations and is recognized as a legitimate business entity.

Liquor License

A liquor license permits you to sell alcoholic beverages. The process to obtain this license can be lengthy and involves multiple steps. You must apply through your state’s Alcoholic Beverage Control (ABC) board. Requirements include background checks, public notices, and sometimes community approval. The type of liquor license you need depends on the kind of alcohol you plan to sell (beer, wine, spirits) and your bar’s operational hours. Fees and availability vary by state and locality.

Food Service License

If you plan to serve food, you need a food service license. This license ensures your bar meets health and safety standards for food preparation and handling. Apply through your local health department, which will inspect your kitchen and food storage areas. You must demonstrate that your facilities are clean and that staff follows proper food safety protocols. Regular inspections will follow to ensure ongoing compliance.

Music License

Playing music in your bar requires a music license. This license covers the rights to play copyrighted music, whether through a live band, DJ, or recorded playlist. Organizations like ASCAP, BMI, and SESAC issue these licenses. You may need to obtain licenses from multiple organizations to cover different music catalogs. Fees depend on your bar’s size, the type of music, and how often you play it.

Sign Permit

A sign permit allows you to display your bar’s signage. Local zoning laws regulate the size, type, and placement of signs. Apply through your city’s planning or zoning department. You must submit design plans and ensure your sign complies with local codes. This permit helps maintain the visual aesthetics of the community and ensures your signage is safe and appropriate for the area.

TIP: Automate timesheets to ensure compliance with labor laws and accurate payroll, which is critical for legal operations.

How to Find the Right Location for Your Bar

Choosing the right location is crucial for your bar’s success. It’s not just about finding a spot; it’s about finding the right spot.

Assess Demographics

Understanding the demographics of your potential location is key. Look at the age and income levels of local residents. A neighborhood with a younger population might be ideal for a trendy nightclub or a casual dive bar. On the other hand, an area with higher income levels might support a sophisticated speakeasy or a brewpub offering craft beers. Knowing who lives nearby helps tailor your bar’s concept to meet their preferences and spending habits.

Evaluate Accessibility

Accessibility can make or break your bar’s success. Ensure your location offers easy parking options. Ample parking encourages more customers to visit, especially those who might drive from surrounding areas. Additionally, consider proximity to public transit. Being near a bus stop or subway station makes it convenient for patrons who prefer not to drive, especially after a night of drinking. Accessibility impacts foot traffic and overall customer convenience.

Research Local Competition

Researching local competition provides insights into what already exists and what gaps you can fill. Visit other bars in the area to understand their offerings, customer base, and pricing. Identify what they do well and where they fall short. This research helps you find opportunities to differentiate your bar. Maybe there’s a lack of live music venues, or perhaps no one offers a particular type of craft beer. Differentiation attracts a unique crowd and reduces direct competition.

Consider Zoning Restrictions

Zoning laws dictate where you can legally operate a bar. Check with local zoning authorities to ensure your chosen location is zoned for a bar or nightlife establishment. Some areas have restrictions on noise levels, operating hours, or proximity to schools and churches. Understanding these regulations upfront prevents legal issues and costly relocations later. Confirming zoning compliance early in the process saves time and ensures your bar can operate without interruptions.

Essential Equipment for Opening a Bar

Opening a bar requires specific equipment to ensure smooth operations and a great customer experience. Here’s a detailed look at what you’ll need.

Bar tools are the backbone of any bar. Shakers, jiggers, and strainers are just the beginning. Shakers help mix cocktails efficiently, while jiggers ensure precise measurements for consistent drinks. Strainers keep ice and other solids out of the final pour. Other essential tools include muddlers for crushing ingredients, bar spoons for stirring, and bottle openers for quick access to beverages. Having a well-stocked bar tool kit allows bartenders to work efficiently and keep customers happy.

Refrigeration

Proper refrigeration is vital for storing ingredients and keeping drinks cold. Coolers and freezers are necessary for maintaining the freshness of perishable items like fruits, juices, and garnishes. Under-counter coolers are convenient for storing frequently used items within easy reach. Freezers are essential for storing ice and frozen ingredients. Investing in high-quality refrigeration units ensures that your bar runs smoothly and that your drinks are always served at the right temperature.

Glassware plays a significant role in the presentation of drinks. Different types of glasses are designed for specific beverages to enhance their flavors and aromas. Pint glasses are perfect for serving beer, while wine glasses come in various shapes to suit red, white, and sparkling wines. Cocktail glasses, such as martini glasses and highball glasses, are essential for mixed drinks. Stocking a variety of glassware ensures that you can serve any drink your customers order, enhancing their overall experience.

Draft Beer System

A draft beer system is a must-have for bars that serve beer. This system includes a keg cooler, CO2 tanks, and taps. The keg cooler keeps the beer at the optimal temperature, while CO2 tanks ensure the beer is properly carbonated. Taps allow for easy dispensing of beer, providing a fresh and crisp pour every time. A well-maintained draft beer system can attract beer enthusiasts and keep them coming back for more.

TIP: Integrate business tools to streamline bar operations and improve overall efficiency.

Investing in the right equipment sets the foundation for a successful bar. Each piece plays a crucial role in daily operations, ensuring that you can serve high-quality drinks efficiently and keep your customers satisfied.

5 Strategies for Marketing Your New Bar

Marketing can be a daunting task, but it’s essential to get the word out and attract customers to your new bar.

1. Develop Your Brand

Creating a unique bar name, logo, and aesthetic sets you apart from the competition. Your brand should reflect the atmosphere and experience you want to offer. Think about what makes your bar special. Is it the craft cocktails, the cozy ambiance, or the live music? Use these elements to shape your brand identity. A memorable name and eye-catching logo can attract attention and make your bar easily recognizable. Consistent branding across all touchpoints, from your signage to your social media profiles, reinforces your bar’s identity and helps build a loyal customer base.

2. Leverage Social Media

Promote your bar on Instagram and Facebook to reach a wider audience. Post high-quality photos of your drinks, events, and interior to showcase what makes your bar unique. Use stories and reels to give followers a behind-the-scenes look and create a sense of exclusivity. Engage with your audience by responding to comments and messages promptly. Run targeted ads to attract locals who might be interested in your bar. Share user-generated content, like photos and reviews from customers, to build trust and authenticity. Social media platforms also offer analytics tools to track your engagement and adjust your strategy accordingly.

3. Host Special Events

Plan trivia nights, live music, and tastings to draw in crowds and keep them coming back. Special events create buzz and give people a reason to visit your bar. Trivia nights can attract groups of friends looking for a fun evening out. Live music adds energy and entertainment, making your bar a destination for music lovers. Tastings, whether for wine, beer, or cocktails, offer a unique experience and can introduce customers to new favorites. Promote these events through your social media channels, email newsletters, and in-bar signage to maximize attendance. Regularly hosting events keeps your bar lively and gives customers something to look forward to.

4. Partner With Local Businesses

Cross-promote with nearby restaurants and shops to expand your reach. Partnering with local businesses can introduce your bar to new customers who might not have discovered it otherwise. Offer joint promotions, like discounts for customers who visit both establishments. Host collaborative events, such as a food and drink pairing night with a local restaurant. Display flyers or business cards for your partners in your bar, and ask them to do the same for you. Building relationships with other local businesses fosters a sense of community and can lead to mutually beneficial opportunities.

5. Implement a Loyalty Program

Reward repeat customers with discounts and perks to encourage them to return. A loyalty program can be as simple as a punch card offering a free drink after a certain number of visits or as sophisticated as a digital app tracking points for purchases. Offer exclusive deals, such as members-only happy hours or early access to event tickets. Recognize and appreciate your loyal customers by giving them personalized offers on their birthdays or anniversaries. A well-designed loyalty program not only incentivizes repeat business but also makes customers feel valued and appreciated, enhancing their overall experience at your bar.

TIP: Discover strategies to create a business plan that will guide you in crafting a comprehensive bar business plan.

Is Opening a Bar Right for You?

Opening a bar can be an exciting venture, but it’s important to assess whether it’s the right path for you. Start by evaluating your skills, experience, and passion. Do you have a background in hospitality or management? Have you worked in a bar or restaurant before? Your experience in the industry can provide valuable insights and help you navigate the challenges of running a bar. Passion is equally important; loving what you do can make the long hours and hard work more rewarding.

Next, consider the financial investment and risks. Opening a bar requires significant capital for leasing or purchasing a location, renovations, equipment, inventory, and initial staffing. Calculate your startup costs and ensure you have access to sufficient funds. Understand the risks involved, including fluctuating market conditions, competition, and the potential for slow business periods. A clear financial plan can help mitigate these risks and set realistic expectations.

Assess your ability to manage staff and operations. Running a bar involves hiring, training, and managing a team. Effective communication and leadership skills are crucial for maintaining a positive work environment and ensuring smooth operations. You’ll also need to handle scheduling, payroll, and conflict resolution. If you enjoy working with people and have strong organizational skills, you’ll be better equipped to manage these responsibilities. Ensure you comply with HR regulations to avoid legal issues and maintain a lawful operation.

Determine if the lifestyle aligns with your goals. Bar ownership often means working late nights, weekends, and holidays. Consider how this schedule will impact your personal life and whether you’re prepared for the demands. The social aspect of running a bar can be rewarding, but it also requires a high level of energy and commitment. Make sure the lifestyle fits with your long-term goals and personal circumstances.

• What : Opening a bar.
• So What : Success depends on type and planning.
• Pros & Cons : High profits vs. big investment and long hours.
• Bottom Line : Plan well and know your market.

Ready to take your bar to the next level? At Homebase, we make managing your team simple and efficient. Let’s make work easier— get started today .

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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Free Bar Business Plan Template

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Write your business plan with help from industry experts

Use this free bar business plan template to easily create a great business plan that organizes your vision and helps you start, grow, or raise funding for your bar.

What's inside? Exclusive insights into how to:

• Build a strong  bar business plan
• Write an executive summary
• Establish a bar operations plan
• Conduct market and financial analyses
• Create a  bar marketing strategy

What is a bar business plan?

A business plan is a written document that describes in detail how your bar defines its objectives and how it’ll go about achieving its goals. A  bar business plan is the blueprint that outlines your entire vision, and it explains in detail how your business will take shape and operate.

How do you write a business plan for a bar?

Whether this is your first time writing a business plan or you’re a seasoned pro, it’s always helpful to work off of a template designed for your industry. When writing your business plan, be sure to include elements like a branded cover page, an executive summary, a company overview, a market analysis, a marketing plan, an operations plan, and a financial analysis. For more information on how to write a bar business plan,  read this article .

Use the Bar Business Plan Template to build a concrete strategy

In most cases, opening a new bar, expanding to a new location, or giving your existing concept an overhaul requires outside capital from investors. But before anyone invests in your dream, they need to see that you’ve got a concrete plan for success. The business plan provides them with a complete description of your strategy. Download the free Bar Business Plan Template to organize your vision and ensure that nothing is overlooked. For a guide to writing a business plan specifically for a bar, learn from this resource:  How to Write a Bar Business Plan . Related bar business resources:

• How to Open a Bar
• Bar POS System
• Bar POS Comparison Tool
• Best Bar Websites
• Cost to Open a Bar
• Bar Marketing Ideas
• Bar Design Ideas
• Bar Branding
• Bar Ideas and Concepts
• Bar Licenses and Permits
• Bar Floor Plans

Restaurant Management Blog

How to Start a Bar in the United Kingdom

Starting a bar in the United Kingdom, an island nation of roughly 67 million people, is an exciting venture that requires careful planning, legal knowledge, and business acumen. This comprehensive guide covers the essential steps to establish a successful bar in the UK , from initial planning to opening day.

1. Research and Planning

Market research.

Understanding the market is crucial. Conduct thorough research on:

• Target Audience: Identify your potential customers and their preferences.
• Location Analysis: Choose a location with high foot traffic, easy accessibility, and a demographic that aligns with your target market.
• Competitor Analysis: Study existing bars in your chosen location. Analyze their strengths, weaknesses, pricing, and customer reviews to identify opportunities for differentiation.

Concept Development

Define your bar’s unique selling proposition (USP). Consider:

• Theme and Ambiance: Whether it’s a sports bar, cocktail lounge, pub, or specialty bar (e.g., wine or craft beer), the concept should reflect in the decor, menu, and branding.
• Menu Offerings: Decide on the types of drinks and food you’ll serve. Innovate with signature cocktails, local brews, or a curated wine list.
• Entertainment and Services: Live music, DJ nights, quiz nights, or sports screenings can attract more customers.

2. Business Plan

A well-structured business plan is essential for securing financing and guiding your business. Key components include:

• Executive Summary: A concise overview of your business idea, objectives, and vision.
• Market Analysis: Detailed findings from your market research.
• Marketing Strategy: Plans for promoting your bar and attracting customers.
• Operational Plan: Day-to-day operations, staffing, and supplier arrangements.
• Financial Projections: Estimated startup costs, revenue forecasts, break-even analysis, and funding requirements.

3. Legal Requirements

In the UK, you need several licenses to operate a bar:

• Premises License: Authorizes the sale of alcohol at your venue. Apply through your local council.
• Personal License: Allows an individual to sell or authorize the sale of alcohol. At least one person with a personal license must be on the premises.
• Music License: If you plan to play recorded music or host live performances, you’ll need licenses from PRS for Music and PPL.
• Food Hygiene Rating: If you serve food, register your business with the local Environmental Health Department for a hygiene inspection.

Ensure compliance with health and safety regulations, including:

• Fire Safety: Conduct a fire risk assessment and install necessary safety equipment.
• Health and Safety: Implement policies to maintain a safe environment for staff and customers.
• Food Safety: Adhere to food hygiene standards if serving food.

4. Funding and Budgeting

Securing funding.

Explore various funding options such as:

• Personal Savings: Using personal funds can demonstrate commitment to potential investors.
• Bank Loans: Prepare a solid business plan to secure a business loan from a bank.
• Investors: Attract private investors or venture capital by presenting a compelling business proposition.
• Crowdfunding: Platforms like Kickstarter can help raise funds from a large number of people.

Estimate all costs involved in starting your bar, including:

• Lease or Purchase of Premises: Location and size will significantly impact costs.
• Renovation and Decoration: Align the ambiance with your bar’s concept.
• Equipment and Inventory: Purchase or lease necessary equipment like refrigeration units, bar counters, and glassware. Stock initial inventory of alcohol and food.
• Staffing Costs: Budget for salaries, training, and benefits for your staff.
• Marketing and Promotion: Allocate funds for initial marketing campaigns to create buzz around your opening.

5. Location and Premises

Finding the right location.

Consider factors such as:

• Foot Traffic: High visibility areas with heavy foot traffic are ideal.
• Accessibility: Ensure the location is easily accessible by public transport and has adequate parking.
• Demographics: The local population should match your target market.

Negotiating the Lease

Negotiate favorable terms for leasing the premises, including:

• Lease Duration: A longer lease provides stability but may require a greater financial commitment.
• Rent Reviews: Understand how and when rent reviews will occur.
• Break Clauses: Clauses that allow you to terminate the lease early can be beneficial.

6. Design and Renovation

Interior design.

The design should reflect your bar’s concept and create a welcoming atmosphere. Consider:

• Layout: Optimize space for customer seating, bar area, and staff movement.
• Lighting: Use appropriate lighting to set the desired mood.
• Furniture: Choose comfortable and durable furniture that complements the theme.
• Decor: Add elements like artwork, signage, and plants to enhance the ambiance.

Hire reputable contractors to carry out renovation work. Ensure compliance with building regulations and obtain necessary permits.

7. Hiring Staff

Recruitment.

Recruit skilled and enthusiastic staff. Key positions include:

• Bar Manager: Oversee daily operations and staff management.
• Bartenders: Skilled bartenders can create great customer experiences and craft signature drinks.
• Wait Staff: Ensure efficient service and customer satisfaction.
• Security Staff: Maintain a safe environment, especially during busy periods.

Provide comprehensive training on:

• Customer Service: Emphasize the importance of friendly and efficient service.
• Product Knowledge: Ensure staff are knowledgeable about the drinks and food on the menu.
• Health and Safety: Train staff on hygiene practices and emergency procedures.

8. Marketing and Promotion

Pre-opening campaign.

Generate excitement and awareness before opening:

• Social Media: Create profiles on platforms like Instagram, Facebook, and Twitter. Share updates, teasers, and behind-the-scenes content.
• Website: Develop a professional website with information about your bar, menu , and upcoming events.
• Press Releases: Send press releases to local media and influencers.
• Launch Event: Host a grand opening event to attract initial customers and generate word-of-mouth promotion.

Ongoing Marketing

Sustain customer interest with:

• Social Media Engagement: Regularly post updates, promotions, and engaging content. Interact with followers and respond to reviews.
• Loyalty Programs: Implement a loyalty program to reward repeat customers.
• Events and Promotions: Host regular events and offer promotions to draw in crowds.

9. Operations and Management

Daily operations.

Efficiently manage day-to-day operations:

• Inventory Management: Track inventory levels to avoid shortages and minimize waste.
• Financial Management: Keep detailed financial records and regularly review your budget and financial performance.
• Customer Feedback: Encourage and act on customer feedback to improve service and offerings.

Compliance and Licenses

Regularly review and renew necessary licenses. Stay updated on any changes in laws and regulations affecting your business.

10. Opening Day and Beyond

Final preparations.

Before opening, ensure everything is in place:

• Stock Up: Have sufficient inventory of drinks, food, and supplies.
• Staff Ready: Ensure all staff are trained and prepared for the opening.
• Marketing Push: Intensify marketing efforts in the days leading up to the opening.

Continuous Improvement

After opening, focus on continuous improvement:

• Monitor Performance: Regularly assess financial performance, customer satisfaction, and operational efficiency.
• Adapt and Innovate: Stay adaptable to changing customer preferences and market trends. Introduce new offerings and improvements based on feedback.

Starting a bar in the United Kingdom is a multifaceted process that requires thorough planning, adherence to legal requirements, and effective management. By following these steps and remaining flexible and responsive to market dynamics, you can build a successful and thriving bar business. With the right mix of passion, innovation, and business acumen, your bar can become a beloved destination for patrons and a profitable venture for you.

Related Posts

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Social Security

Frequently asked questions, what happens if i work and get social security retirement benefits.

You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, we will reduce your benefits. Starting with the month you reach full retirement age, we will not reduce your benefits no matter how much you earn.

We use the following earnings limits to reduce your benefits:

• If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit.

For 2024 that limit is $22,320.

• In the year you reach full retirement age , we deduct $1 in benefits for every $3 you earn above a different limit, but we only count earnings before the month you reach your full retirement age.

If you will reach full retirement age in 2024, the limit on your earnings for the months before full retirement age is $59,520.

Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings.

Use our Retirement Age Calculator to find your full retirement age based on your date of birth.

Use our Retirement Earnings Test Calculator to find out how much your benefits will be reduced.

What counts as earnings:

When we figure out how much to deduct from your benefits, we count only the wages you make from your job or your net earnings if you're self-employed. We include bonuses, commissions, and vacation pay. We don't count pensions, annuities, investment income, interest , veterans benefits, or other government or military retirement benefits.

Your benefits may increase when you work:

As long as you continue to work, even if you are receiving benefits, you will continue to pay Social Security taxes on your earnings. However, we will check your record every year to see whether the additional earnings you had will increase your monthly benefit. If there is an increase, we will send you a letter telling you of your new benefit amount.

When you’re ready to apply for retirement benefits, use our online retirement application , the quickest, easiest, and most convenient way to apply. If you need to report a change in your earnings after you begin receiving benefits: If you receive benefits and are under full retirement age and you think your earnings will be different than what you originally told us, let us know right away. You cannot report a change of earnings online. Please call us at 1-800-772-1213 (TTY 1-800-325-0778), 8:00 a.m.  – 7:00 p.m., Monday through Friday, or contact your local Social Security office .

There is a different work test for beneficiaries working outside of the United States. If you live outside of the United States, visit the Social Security Office of Earnings & International Operations page to find the office that serves your country of residence.

More Information How Work Affects Your Benefits Examples: How We Deduct Earnings From Benefits

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30 million student loan borrowers could be eligible for relief in latest forgiveness plan

• Published: Aug. 01, 2024, 10:39 a.m.

MLive file photo

• Matt Durr | [email protected]

As President Joe Biden continues to push various plans to provide student-debt relief, the Department of Education announced Thursday it will begin reaching out to borrowers about the options going forward to receive relief. All borrowers who have at least one outstanding federally held student loan will be contacted via email and provided with the options still available to them, the DOE said.

The DOE was clear however that the email does not guarantee the borrower will be eligible for relief.

Along with providing the options available, the email will also include information on how borrowers can opt out of the relief plans by contacting their servicer by Aug. 30. If a borrower elects to opt out of the plans, they will not be able to opt back in.

“These latest steps will mark the next milestone in our efforts to help millions of borrowers who’ve been buried under a mountain of student loan interest, or who took on debt to pay for college programs that left them worse off financially, those who have been paying their loans for twenty or more years, and many others,” said U.S. Secretary of Education Miguel Cardona. " The Biden-Harris Administration made a commitment to deliver student debt relief to as many borrowers as possible as quickly as possible, and today, as we near the end of a lengthy rulemaking process, we’re one step closer to keeping that promise.”

In April, the Biden administration released a draft set of rules that would allow the DOE to forgive student-loan debt for millions of borrowers who qualify. Those rules have not been finalized, but would make an estimated 30 million borrowers eligible for relief if approved.

The rules would allow for the partial or full forgiveness of student-loan debt for borrowers who:

• Owe more now than they did at the start of repayment.
• Have been in repayment for decades.
• Are otherwise eligible for loan forgiveness but have not yet applied.
• Enrolled in low-financial value programs.

The update comes after the 8th Circuit Court of Appeals last month granted a motion for an administrative stay which halted Biden’s most recent plan to lower payments or forgive student debt for millions of borrowers.

Since the Biden administration first introduced student-debt relief options, the DOE says 4.8 million borrowers have benefitted from the $168 billion in relief that’s been approved.

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Millions of student-loan borrowers should be on the lookout for an email update on Biden's broader debt cancellation plan. They might need to take action.

• The Education Department is emailing student-loan borrowers with updates on its broad debt relief plan.
• The emails will state that borrowers who wish to opt out of the relief must contact their servicers by August 30.
• The department plans to finalize the relief by October and will update eligible borrowers at that point.

Millions of student-loan borrowers are getting closer to a broader version of debt cancellation .

On Wednesday, the Education Department announced it was taking another step toward implementing its plan to cancel student debt using the Higher Education Act of 1965 . This process began after the Supreme Court struck down President Joe Biden's first attempt at relief last summer.

The plan, expected to benefit over 30 million borrowers, is required to undergo negotiated rulemaking. During this process, the department negotiates with stakeholders and holds a period of public comment before finalizing the rule.

The department's latest announcement brings borrowers closer to final implementation. All borrowers with at least one federal outstanding student loan will receive an email from the Education Department to provide updates on the relief, including the notification of an August 30 deadline for borrowers to contact their servicer if they wish to opt out of the relief .

Borrowers might choose to opt-out for a number of reasons, including concerns about state tax liabilities should they receive loan forgiveness. The department said that borrowers who opt-out will not be able to opt back in at a later date.

A copy of the email reviewed by Business Insider told borrowers that "if you WANT to be included in potential student debt relief, you don't need to take any action."

Related stories

Additionally, since the rules are not yet finalized, borrowers who receive an email are not automatically guaranteed relief — the department will provide additional details to eligible borrowers upon finalization.

"Today, my Administration took another major step to cancel student debt for approximately 30 million Americans," Biden said in a statement.

"By providing more information to borrowers on how they can take advantage of our upcoming debt relief programs, borrowers will be prepared to benefit swiftly once the rules are final," he continued. "Despite attempts led by Republican elected officials to block our efforts, we won't stop fighting to provide relief to student loan borrowers, fix the broken student loan system, and help borrowers get out from under the burden of student debt."

The Education Department released its draft rules for debt relief in April. They included full or partial debt relief for borrowers who have been in repayment for at least 20 years, borrowers who owe more than they did when they entered repayment, borrowers who are eligible for loan forgiveness but have not yet applied for the relevant program, and borrowers who enrolled in schools that left them with too much debt compared to post-graduation earnings.

"The Department expects that all four of these proposed forms of relief would be provided to eligible borrowers without requiring any action from borrowers; no application would be needed," the press release said.

The department plans to finalize the rules by October , meaning relief could reach borrowers before the election. However, the plan is likely to face lawsuits similar to the ones that struck down Biden's first plan, meaning there could be delays to the relief depending on court rulings.

"The Biden-Harris Administration made a commitment to deliver student debt relief to as many borrowers as possible as quickly as possible, and today, as we near the end of a lengthy rulemaking process, we're one step closer to keeping that promise," Education Sec. Miguel Cardona said in a statement.

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Creole Soul Restaurant & Bar

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