- Original Poster
- #1
Hi all! Right, so, essentially an opportunity has come up to take over the lease of a rock music bar near me. The existing lease only runs until March 2025 but is able to be renewed (subject to rent being paid on time etc). The lease is available as the existing owner has developed a personal health issue. The cost of the lease is £25,000.
I'm in the process of finding out key financials, but I understand the bar most recently was averaging between £4000-£6000 weekly turnover. It currently opens 3 days a week. The lease is free of tie to any brewery and the license is 7 days a week and can potentially open until 6am, neither of which are being explored so I see room for growth.
The city is a large student city and the venue sits opposite an O2 Academy with almost daily major musicians playing, as well as being located near the train station/coach station and in the town centre. The venue is something of a brand in the local area, known for hosting lots of up and coming live music acts etc.
I have worked in pubs before and currently work as a DJ in a (different) rock music venue. I would likely look to hire a friend of mine who works as a bar manager where I DJ as the general manager if I took on the lease as he has years of bar management experience.
I have a number of questions for you all if you don't mind.
1) Should I do it?
2) I have a small amount of money saved, a few thousand, but would need a loan to purchase the lease and have working capital going in. Any advice as to the best ways to go about this? I've recently registered a limited company and would potentially be eligible for a start-up loan. I don't know whether an unsecured business start up loan or pub mortgage or whatever would be most suitable. Any advice welcomed.
3) The potential capacity for the venue is, I believe, approximately 300. What is the kind of turnover/profit I could expect off this, given the turnover as mentioned above. I see room for growth, but when I speak with the existing leaseholder in the next day or so, I want to be able to know what to expect in regards to profits etc.
4) Similarly, what kind of rent would likely be due on this property? I will be finding out shortly, but I'd like to know advice on what to expect.
5) How much realistically am I going to need for this venture if I go for it? I was expecting to try a loan of £35,000. £25,000 for the lease and £10,000 working capital, plus the small amount I have personally if required. Obviously I want to balance erring on the side of caution in terms of not being short with what I could realistically afford to borrow in loan terms.
6) There is an existing structure in place, in that there are staff who have worked there until quite recently when the bar closed its doors just before christmas. If possible, would you recommend keeping on as much of the existing structure and staff as possible, assuming the bar is turning a profit?
7) Any other hints and tips would be most welcome. I imagine many will warn against the perils of pub/bar ownership generally, but would appreciate critiques/advice on the specifics provided if possible.
Thank you all so much. Apologies for the lengthy post, it's my first time, so please be nice.
I'm in the process of finding out key financials, but I understand the bar most recently was averaging between £4000-£6000 weekly turnover. It currently opens 3 days a week. The lease is free of tie to any brewery and the license is 7 days a week and can potentially open until 6am, neither of which are being explored so I see room for growth.
The city is a large student city and the venue sits opposite an O2 Academy with almost daily major musicians playing, as well as being located near the train station/coach station and in the town centre. The venue is something of a brand in the local area, known for hosting lots of up and coming live music acts etc.
I have worked in pubs before and currently work as a DJ in a (different) rock music venue. I would likely look to hire a friend of mine who works as a bar manager where I DJ as the general manager if I took on the lease as he has years of bar management experience.
I have a number of questions for you all if you don't mind.
1) Should I do it?
2) I have a small amount of money saved, a few thousand, but would need a loan to purchase the lease and have working capital going in. Any advice as to the best ways to go about this? I've recently registered a limited company and would potentially be eligible for a start-up loan. I don't know whether an unsecured business start up loan or pub mortgage or whatever would be most suitable. Any advice welcomed.
3) The potential capacity for the venue is, I believe, approximately 300. What is the kind of turnover/profit I could expect off this, given the turnover as mentioned above. I see room for growth, but when I speak with the existing leaseholder in the next day or so, I want to be able to know what to expect in regards to profits etc.
4) Similarly, what kind of rent would likely be due on this property? I will be finding out shortly, but I'd like to know advice on what to expect.
5) How much realistically am I going to need for this venture if I go for it? I was expecting to try a loan of £35,000. £25,000 for the lease and £10,000 working capital, plus the small amount I have personally if required. Obviously I want to balance erring on the side of caution in terms of not being short with what I could realistically afford to borrow in loan terms.
6) There is an existing structure in place, in that there are staff who have worked there until quite recently when the bar closed its doors just before christmas. If possible, would you recommend keeping on as much of the existing structure and staff as possible, assuming the bar is turning a profit?
7) Any other hints and tips would be most welcome. I imagine many will warn against the perils of pub/bar ownership generally, but would appreciate critiques/advice on the specifics provided if possible.
Thank you all so much. Apologies for the lengthy post, it's my first time, so please be nice.
