How to start a bar(club)


Owning your own bar/club sounds like the perfect life to many potential entrepreneurs, but it’s not always fun and games behind the scenes. It can mean long hours, meticulous attention to detail, giving up vacations and weekends, and sometimes dealing with unruly customers.
Moreover, like many new businesses, the statistics for bars aren’t in favour of the startup. Why do they fail? The first reason is they didn’t have enough capital to keep the business going. The second reason is a lack of knowledge about the business. You need to ask yourself if you’re really the type of person who wants to own and run a bar, who like to talk to people and shake hands. You need to ask yourself if you’re able to manage a family life, considering the time commitment and hours of operation. Because you will have to work until 3 or 4 a.m. at your bar.
But if you have a clear vision, do your homework and learn the ins and outs of the business, it can also translate into a rewarding and financially successful enterprise.
There are five questions, you have to do yourself to start a successful bar/club.
The first: what kind of bar? You have to decide what kind of establishment you’d like to own. In USA, there are five kinds of possibilities: a neighborhood bar, the American version of the English pub, perfect for small-scale entertainment options, such as darts, pool tables, video games and jukeboxes, a sports bar, where there are televisions in view of every seat, sometimes all tuned to different channels, a brewpub or a beer bar, where you can offer a large selection of different types of beer, including microbrews produced elsewhere, a specialty bar, where you concentrate on one type of libation, and a club, where you may open a small cocktail lounge with a jukebox or a tinkling piano in the corner.
The second problem is the investments. Because of the high failure rate, you may come across desperate bar owners willing to take a low purchase price just to get out of the business. You’ll also find that startup costs for bars vary depending on size, location and target market. So we can’t give you a concrete amount for what you can expect to pay to start your business. However, down are the startup costs for a tavern with a maximum capacity of 100 people and serves only beer and wine with a limited menu.
The third problem is location. Your choice of location will depend on how you want your bar to look, what you want your bar to contribute to the community, and the kind of clientele you want to patronize it. Then you need to decide whether you want to buy the location or sign a lease. Again, that depends on your budget. Finally, you need to figure out how to fuse your concept with both your name and your location to your best advantage.
You should consider factors such as safety, parking, accessibility to customers and even the history of the site when choosing a location.
The fourth problem is the name. In your brainstorming sessions, keep these three questions in mind: How well does the name fit the concept you want to create? What types of customers will the name attract? What will people expect based on the name?
The least problem is advertising. The media doesn’t bring as much reward for the cost as it does for many other types of businesses. The only cost-effective way to advertise a bar is word-of-mouth. You can organize promotional events but when you don’t have word-of-mouth working for you, you are in serious trouble. Keep in mind.


  • License


Description Cost
Rent (security deposit and first month) 3.300 $
Equipment 43.000 $
Beginning inventory 22.000 $
Leasehold improvements 18.000 $
Licenses 35.000 $
Phone and utilities 5.000 $
Grand opening marketing 1.000 $
Legal services 400 $
Accounting 300 $
Insurance 500 $
Miscellaneous expenses 13.000 $
Total 141.500 $


Comments are closed.

Scroll To Top