New bar startup

[Mmoo12/03]

Myself and an associate have decided after years of working in the bar trade to lease a venue. We have talked it over numerous times have a concept and decided we want to proceed with opening. I’m just looking for general advice on start up costs etc. The venue already has an alcohol license needs a minor refurb and is a free house. There will be no staffing costs as we plan to do everything ourselves and the venue is fairly small. Any advice would be appreciated.

Regards

 

[VW145]

I recently opened up a cafe/bar and we’ve been running for 14 months so i have a small amount of experience - would just like to say I’ve found reps to be insanely helpful with regards to point of sale, glassware, events etc and also I’m with Carlsberg in terms of booze and they have lent me 2 drinks fridges as well as the draughtmaster unit. Those 3 things probably saved me a good couple of grand.

Also drink stuff website is great for all other bits and pieces, and make sure you apply for a trade account as you get a good discount.

 

[Mr D]

Myself and an associate have decided after years of working in the bar trade to lease a venue. We have talked it over numerous times have a concept and decided we want to proceed with opening. I’m just looking for general advice on start up costs etc. The venue already has an alcohol license needs a minor refurb and is a free house. There will be no staffing costs as we plan to do everything ourselves and the venue is fairly small. Any advice would be appreciated.

Regards

You aren't paying yourselves any wages?

Get some staff costs. What happens when one of you wants a night off? What happens when you need to be 2 places at once? What happens when you are ill?

Oh and whatever you do, whether partnership or limited company, set up an agreement in advance. The forums are littered with partnerships and companies where the people have come to disagree with each other such they are ruining the business or going separate ways. Planning for these sorts of things in advance while still talking is good.

 

[Noah]

I’m with Carlsberg in terms of booze and they have lent me 2 drinks fridges as well as the draughtmaster unit. Those 3 things probably saved me a good couple of grand.

Not meaning to challenge your business decisions, but want to point out to the OP that this sort of arrangement, while it has obvious advantages, does severely limit the range of drinks you can serve, and may become a millstone down the road. Carlsberg are not giving you £k's out of the goodness of their heart, they are getting you hooked on their products.

 

[VW145]

Not meaning to challenge your business decisions, but want to point out to the OP that this sort of arrangement, while it has obvious advantages, does severely limit the range of drinks you can serve, and may become a millstone down the road. Carlsberg are not giving you £k's out of the goodness of their heart, they are getting you hooked on their products.

Not limited. For two reasons:
1 - we only have a very small space so the draughtmaster system is the only feasible system for us to have as oppose to the traditional cellar. We’re primarily a summer/warm weather venue so 2 lagers and a cider is enough.

2 - they dont dictate what i can put in the fridges.

 

[Noah]

Not limited. For two reasons:
1 - we only have a very small space so the draughtmaster system is the only feasible system for us to have as oppose to the traditional cellar. We’re primarily a summer/warm weather venue so 2 lagers and a cider is enough.

Aren't you limited to the lagers and ciders that Carlsberg want to sell you, at the price they want to sell to you? I could be wrong - would be happy to be so.

 

[The Byre]

Oh and whatever you do, whether partnership or limited company, set up an agreement in advance. The forums are littered with partnerships and companies where the people have come to disagree with each other such they are ruining the business or going separate ways. Planning for these sorts of things in advance while still talking is good.

This and with knobs on!

Write down and agree what is going to happen if one of you gets fed-up, cold feet, the job of a lifetime, falls down dead, doesn't pull their weight, gets ill, runs off with a 'scarlet woman' from Ponders-End or just explodes!

 

[VW145]

Aren't you limited to the lagers and ciders that Carlsberg want to sell you, at the price they want to sell to you? I could be wrong - would be happy to be so.

With prices, yes. However as i said, I’m free to buy from where/whoever.
This may be different for some companies/areas, but my reps have been brilliant

 

[patientlady]

I think the most important thing for you to both do, is to put in writing a business joint agreement. Each responsibilities , who's put what money into the business etc. Your buddies now but that soon changes with business stresses.
Join FSB Federation of Small Businesses, for a very minimal outlay you will have solicitors advice at your fingertips, free with the membership, business templates, help for employing and so much more - absolutely worth every penny for a start up. Make sure you have enough money for cash flow and pay for supplies up front COD.
Many on here may say I am stupid because of my last comment, but having supplied in recent years as a wholesaler, you will get the best prices on the market with those payment terms, if you want credit you will get the worst terms - without exception. Good luck in your venture

 

[Mr D]

I think the most important thing for you to both do, is to put in writing a business joint agreement. Each responsibilities , who's put what money into the business etc. Your buddies now but that soon changes with business stresses.
Join FSB Federation of Small Businesses, for a very minimal outlay you will have solicitors advice at your fingertips, free with the membership, business templates, help for employing and so much more - absolutely worth every penny for a start up. Make sure you have enough money for cash flow and pay for supplies up front COD.
Many on here may say I am stupid because of my last comment, but having supplied in recent years as a wholesaler, you will get the best prices on the market with those payment terms, if you want credit you will get the worst terms - without exception. Good luck in your venture

Some of us have had decent terms with credit.
Including discount for paying early. 4% discount isn't a lot but on a £2k order its £80. And multiple £2k orders a year add up with the discount.

Agree its a good idea to have enough money to pay for supplies. Few things worse than having great stock that will sell well but not generating enough to pay your supplier bill.