Start A Bar Strategically

Listed below are some strategies & guidelines you'll need to understand in order to increase your chances of hospitality success, ranging from preliminary market research through to staff choice & the general public's perception of your venue.

Entrepreneurs around the globe are constantly turning to the hospitality industry to expand their empires & grow their wealth. The decision to start a bar is that ought to be carefully thought about - whilst operating a bar can be an very profitable venture, there's detailed blueprints to be made & lots of risks at stake. Only through cautious planning & meticulous research are you able to successfully turn your vision in to a reality - there is much more to this industry than meets the eye. Before the red tape is cut & the celebrities start posing for the paparazzi over your carefully chosen cuban cigars & XO Cognac, there's numerous key ideas that you will need to understand & master before you can reap the benefits of being 'the owner'.


For example, if the area you are thinking about choosing to start a bar is in a geographical area which happens to be frequented by middle age couples with young children, or older individuals that are of retirement age, chances are you won't experience high volumes of business (it is safe to conclude that this demographic are not your desired clientele). In case you compare this to a bar in a part of town that is known for university students & young singles, chances are your establishment will be busier & you'll make more profit (as university students & young singles are likely to spend extra funds on the products you are selling). It would not make sense to open a nightclub around a retirement village, nor would it make sense to open a star tapas bar in a low-budget university area.

First, you'll need to do your market research - it is not an smart business venture to blindly open a star venue & hope for five-star customers to show up. The most successful businesses, irrespective of industry, know the importance of performing extensive market research. Doing so gives a person or group the chance to research specific information about their potential customers (which will vary greatly between geographical locations - For example, researching particular suburb or shire may not reflect the demographics of a neighboring suburb or shire - it is very essential to research all influencing areas). Knowing the gender, age, income, schooling, occupation & purchasing habits of a concentrated group according to location can help influence numerous decisions in the beginning phases of beginning a bar. Contact your local council for publicly released census information (if feasible in your area) to select the demographics of your target location.

So, it pays to research your surrounding area - you'll need to rest assured knowing that the residents in the surrounding area can support themselves financially when they visit your establishment. It is wise to start building this in to a business plan - perform a SWOT & PEST analysis.

A SWOT analysis clearly outlines internal Strengths, Weaknesses, Opportunities & Strengths (SWOT) in your venture. A PEST analysis outlines any outside challenges you may face in the Political, Economical, Social & Technological aspects of your local economy. Although this may take time to complete, your business plan will be an very valuable tool for compiling your research & conclusions, presenting the plan for your bar & (most importantly) obtaining finance to pay for the creation of your bar. As soon as the idea to start a bar enters your head, you ought to be jotting down your ideas. Ultimately the aim is to create a solid business plan, which details each aspect of the method, from the name of the bar & the proposed location, to the niche you need to serve & who your target audience will be, among lots of others. Use your business plan as your guide & don't deviate from it. Each step must be carefully planned first before taking any action.

You'll also must be sure that you know exactly what you'll offer your customers when they visit your venue. It is daft to assume that customers will automatically visit a bar because it is open for business - you'll need to be clear cut in what you are going to offer, designed in a way that will attract the demographic in your area. You'll need to explore every idea & idea, & make it an essential habit of asking yourself a thousand questions about each idea. Will this idea make funds? (for example, a bakery won't make as much funds as a cafe, as customers may only buy a pie in a bakery - in a cafe they may sit down & spend times as much) Will this be an simple style of venue to operate? Will you need different shifts of staff to work morning, dinner & night? Will you need to get different licenses for different features of your establishment? Do you need food handling permission? The number of questions is limitless. The services provided mean over having a bunch of drinks as well as a few appetizers on the menu. Think about not only the service & products you need to offer but the type of atmosphere as well.

Ask yourself overall: What is your aim in opening a bar? Knowing the answer to this query will make everything else much clearer when you define your style of venue.

The challenge with trying to start a bar is the fact that there is a lot of competition. This makes it hard to stand out from the rest. However, by identifying a niche market for yourself, your bar has the chance to truly be matchless (compared to other bars that may be located in the same area). way to approach this is to evaluate the kinds of bars currently in business in the area you need to conduct your operation. Are all of them sports bars? Which of them are the most frequented & why? Do you recognize sure consumer trends, activities or interests that the people in the area have in common? Do you thing there is an 'untapped niche' in your area? This all comes down to doing your research - by doing research you'll soon find the right 'formula' of bar which will generate revenue, exploit an untapped niche & appeal to the back pockets of the people in your target geographical location.

There's a quantity of bar styles out there - pubs, sports bars, specialty bars, neighborhood bars & even club bars. Unless you know this basic information, trying to start a bar is going to be difficult-not to mention unorganized. When trying to make this decision, don't think about which kind will make you the most funds, either, although making a profit is essential. The style you pick ought to be that you will enjoy jogging & can see the true potential in growing it in to a success. As I mentioned earlier - ask yourself a thousand questions, & when you have chosen a style, stick to the idea. Do your research - visit as lots of other establishments as you can.

Before investing time, funds & hard work in to beginning a bar, it is vital to crunch the numbers to establish profit amounts, based on the details of your business plan. Using an income simulator is an effective way of obtaining this type of information. Income simulators & profit/loss calculators can be found on various sites. Enter a range of numbers in to the necessary fields & see what figures you come up with. Estimate how much funds you would need to pull in to make a first rate profit & run your bar optimally. Knowing the potential numbers ahead of time will prevent any disagreeable surprises after you have opened your business. As I mentioned earlier - prior research will remove the chances of the effects of unexpected circumstances in your establishment.

Finally, get prepared to work hard. Even the smallest businesses need tons of hard work to succeed. To start a bar, you'll must be prepared for taking on long hours filled with planning, raising capital, working with various people & doing whatever it takes to get the job done.