Planning to open a small Bar

[releaseyourself]

Hey guys,
New to the forum, so hello.


I am looking into opening a small bar as soon as the economy starts to look better, so i would like to be ready with the business plan and all information etc so that i will be ready to go when the time is right.

I have some funds, although i am sure i would need more so it would either be a business loan or partnership with someone.

I currently work as a professional DJ/Music Producer... So i know the scene very well and have lots of music connections, although my business skills are not up to it at the minute.

So my reason for signing up here is to find lots of information on the business side of things from licenses, equipment, leasing, rates etc etc.

It would be good to hear from anyone who has gone into a similar project with some good advice.

Cheers!

 

[patientlady]

Hi
My only advice, which you will not like - Is don't do it! There are very experienced operators out there and they are losing money hand over fist! January& February have been dire for many.
Please think how you can expand your current business instead!

 

[releaseyourself]

Hi thanks for the reply.

It will be a future business plan (1-2 years)... No way would i open in this present climate.

There is nothing i can expand in my current business that i can think of.

 

[vvaannmmaann]

Quote "as soon as the economy starts to look better"

What are you planning as using for an indicator for this moment?

 

[releaseyourself]

Quote "as soon as the economy starts to look better"

What are you planning as using for an indicator for this moment?

Lots of research, local business info and instinct!.. I work in the heart of Bars and Clubs so i will be keeping an eye on whats currently happening out there.


There is also local University currently in progress which will also hopefully bring lots of students.


I would open in my home city where i have lived for 35 years, so i have seen the local economy expand and contract over the years.

 

[sla3]

Just keep an eye open for how many of these are closing every day, and how many open only to close shortly thereafter. And that was in the good times. It's not for the faint-hearted or under-funded. It will burn cash faster than a big hot burny thing. A fire, yes: that's it.

 

[releaseyourself]

Thanks, yes i have been doing that over the years... Lots have opened and closed within 1-2 years locally.


As i say this is a future project.

 

[tony84]

I used to own a pub...another one in the camp of DONT DO IT

Not worth the hassle.
Fights,
Drugs,
People climbing on the roof ready to break in holding hammers and axes,
people breaking in,

Your social life goes out of the window as your working when its the best time to go out.

 

[RevaxMedia]

Hey guys,
New to the forum, so hello.


I am looking into opening a small bar as soon as the economy starts to look better, so i would like to be ready with the business plan and all information etc so that i will be ready to go when the time is right.

I have some funds, although i am sure i would need more so it would either be a business loan or partnership with someone.

I currently work as a professional DJ/Music Producer... So i know the scene very well and have lots of music connections, although my business skills are not up to it at the minute.

So my reason for signing up here is to find lots of information on the business side of things from licenses, equipment, leasing, rates etc etc.

It would be good to hear from anyone who has gone into a similar project with some good advice.

Cheers!

I used to be a DJ and I always wanted to buy my own bar and I viewed some but the things that put me off were;

1. Getting a mortgage - Very risky business, I was told to expect to pay 40-50% deposit. Not sure if that is because of my age.

2. Location vs population - The cost of a bar in a well populated area can be very expensive and the cheaper bars are too far out of the way to generate any real 'punters'

3. Rent - Renting a bar seemed ideal but after looking at the previous tenants none of them could hold it down for longer than 12-24 months.

4. Smoking Ban - I was looking at this just before the beginning of the smoking ban which has damaged smaller bars with local punters.

5. Price of alcohol - 2 Pints of larger or 8 cans down your local supermarket stops people going out as much.

6. Overheads - You need a fair amount of cash just to get it up and running, staff, equipment, stock , decor etc...

Just to name a few - I would personally stay away from purchasing a bar if this is your first business venture, I would get a job working in one and see if you can handle the lifestyle.

 

[TotallySport]

I am also an ex landlord and also in the camp of don't do it, in all customer focus business you get plonker customers, but none more so than the pub trade.

And with all due respect as a DJ you get to see the nice side of the business and are normally kept in the dark about the plonkers, ask the door staff.

I think tony84 sumed it up fairly well, also nothing like an area manager going on holiday 2 weeks in the summer, a week over christmas and a 1 week at easter, only to tell you, you carn't take any key time off, and your days off are always tuesday and sometimes but not always wednesday.

 

[lttvtl]

Hey guys,
New to the forum, so hello.


I am looking into opening a small bar as soon as the economy starts to look better, so i would like to be ready with the business plan and all information etc so that i will be ready to go when the time is right.

I have some funds, although i am sure i would need more so it would either be a business loan or partnership with someone.

I currently work as a professional DJ/Music Producer... So i know the scene very well and have lots of music connections, although my business skills are not up to it at the minute.

So my reason for signing up here is to find lots of information on the business side of things from licenses, equipment, leasing, rates etc etc.

It would be good to hear from anyone who has gone into a similar project with some good advice.

Cheers!

I think this plan is very risk But if you really think that you can do this,you want to notice some things:
1.Competitors
2.market
3.Population
4.finance
5.Marketing

 

[suzanstive]

The Suggestion Is Just Do More Hard Work And Get More Knowledge Relate Your Flied

 

[businessfunding]

I have also run a pub for a relaqtively short period (ir as stand-in whilst the owners were setting up another)

I'm not in the camp of 'don't do it' - but I am in the camp of think about it very seriously.

The only way this is a lifestyle business is that it becomes your life, It is extremely hard work, and you need a very good business brain to stay one step ahead of the cometition.

Having siad that, the competition aren't your main enemy; that comes in the form of landlords, Environmental Health and other Government agencies, people in wheeled homes, drug dealers etc etc etc...

 

[tony84]

wheeled homes lol, i like that.

To be honest we found gypsies to be pretty good.
You would get maybe 20-30 people in a night. The women would sit on 1 side the men on the other. If they were left alone they were fine.
They spent a lot of money, they might have the odd fight between themselves but they generally took it outside.

More than i can say for a lot of people who never lived in caravans. Carrying knives, screwdrivers, stanley knives god knows what else.

Women were always the worst! Either causing trouble getting blokes to fight over them or if not doing that then graffiti in the toilets, putting massive big toilet rolls in the toilet?!?!? Mens toilets was usually a doddle to clean womens on the other hand were rarely.

Sorry, im not overly negative about my past. I did actually enjoy it, i met a lot of people most were good, some were bad, ive made a lot of friends and the odd enemy and learnt a hell of a lot (not just changing barrels but handyman type work when things happen on a saturday night and you cant get someone out etc) but i would NEVER do it again.

 

[stukie99]

What music scene/genre do you focus on?
My view on this is it's the same with business, what do you have that's different? I regularly attend events at Digbeth, Birmingham. They have turned a warehouse into a liscenced venue and they have promoters each doing a night over a Thursday, Friday, Saturday, & Sunday. The nights have become so successful (charging £10 entry with a 3500 capacity and £3.50 on bottles), they managed to have an event in Ibiza in the summer, and they now travel across the nation.
How? It's a new scene that's becoming more and more popular. That's how it's different and that's the niche. People across from all over will travel as it's not the same as your typical commercialised club or regular pub.
The DJ/Promoter who started this night, went from being fairly comfortable to absolutely minted. With him being a talented DJ in a Techno/House/Jackin' scene he was able to deliver (with other DJs) something other clubs & pubs didn't. Bank Holidays ticket costs are usually around £20, with again a capacity of 3,500 that always seems to sell out.
However, this is of course different to a typica Lloyds bar, wine bar, pub, or high street club.

 

[sla3]

The DJ/Promoter who started this night, went from being fairly comfortable to absolutely minted.

And he sold out when?

 

[sla3]

To be honest we found gypsies to be pretty good.

I found the Bikers in the Public Bar to be great folks. Always made them welcome. Oddly, I never had any trouble in that bar, or the lounge ...

I wonder why?

 

[MOIC]

To open any business is tough at the moment, and in general, is difficult even when times are good.

I think most posters are taking the current retail / economic climate into account when giving their views.

For what it's worth, when the economy gets going again (A long time from now), if you can introduce an atmosphere within the bar to attract the type of clients that suit the area, the music you're playing, limited (But good) snacks, then you have the ingredients of doing well, especially as you say there will be a good catchment area from the university.

Look at the prices you will need to sell for, the expenses you will need to check, and the profit margin you think you will make.

Don't underestimate your expenses, the capital you will require for set-up costs etc, and the money needed to have in the bank for the first year of trading.

It's not easy in any economy, but if you start small and know what to expect, and the fact that you will know how to create the right atmosphere with the music you are going to play, then...................maybe.

 

[kulture]

I am not 100% sure that the state of the economy is the only factor. I believe that there is a cultural change going on where people simply do not use bars as much. Either because of the cheap supermarket alcohol, or other factors. Pubs especially are becoming less popular, even in villages where there are no supermarkets and no competition. So it has to be more than simply the economy.

In a recession, places like theatres and cinemas tend to do better. Perhaps because people like to escape. Clearly Pubs and bars are no longer providing this level of escape.

 

[sla3]

especially as you say there will be a good catchment area from the university

But will students be quite as willing to p*ss their money* away when they are facing fees of £9k pa (albeit deferred) and increasing rental costs & cost of living?

In the "Age of Austerity" basing a business on 'luxury' or even 'discretionary' spending might not be the soundest decision.


* I was one of the lucky generation who got paid to go to University ... I still have an excellent record collection and poor liver function

 

[Frimley111R]

From a consumers viewpoint, the bars/pubs I see closing were shite anyway!

There's still a potential big demand for a decent bar, especially one with decent music. Money for alcohol is not such and issue as I see it. People want to go out, not sit at home drinking cans.

I've been in plenty of pubs/bar that have been heaving in the last few years because they are good. Do it right, put up with the negatives and you'll be making some good money. It won't be easy but what is?

 

[MOIC]

But will students be quite as willing to p*ss their money* away when they are facing fees of £9k pa (albeit deferred) and increasing rental costs & cost of living?

University students like the social scene, it's part of the 'university culture'

Given that this project is a couple of years away, and not all students are penny poor (Yes, perhaps the majority are), maybe an escape to a small bar that plays decent music and has cheap, decent food will be an attraction.

If all the ingredients are there, it could work. (Not saying its easy)!

 

[Banned]

People want to go out, not sit at home drinking cans.

I've been in plenty of pubs/bar that have been heaving in the last few years because they are good.

On a Friday & Saturday night. Unfortunately you have to pay the bills seven days a week.

 

[sla3]

On a Friday & Saturday night. Unfortunately you have to pay the bill seven days a week.

And the punters are not blasted on the booze sold over the counter, neither ....

 

[Banned]

And the punters are not blasted on the booze sold over the counter, neither ....

Exactly, my kids get "pre-pissed" before going out. Not proud of that mind, but it's what they do.

 

[releaseyourself]

What music scene/genre do you focus on?
My view on this is it's the same with business, what do you have that's different? I regularly attend events at Digbeth, Birmingham. They have turned a warehouse into a liscenced venue and they have promoters each doing a night over a Thursday, Friday, Saturday, & Sunday. The nights have become so successful (charging £10 entry with a 3500 capacity and £3.50 on bottles), they managed to have an event in Ibiza in the summer, and they now travel across the nation.
How? It's a new scene that's becoming more and more popular. That's how it's different and that's the niche. People across from all over will travel as it's not the same as your typical commercialised club or regular pub.
The DJ/Promoter who started this night, went from being fairly comfortable to absolutely minted. With him being a talented DJ in a Techno/House/Jackin' scene he was able to deliver (with other DJs) something other clubs & pubs didn't. Bank Holidays ticket costs are usually around £20, with again a capacity of 3,500 that always seems to sell out.
However, this is of course different to a typica Lloyds bar, wine bar, pub, or high street club.

Thanks for all your helpful advice guys... Some things in your posts that i didnt think of.

In reply to your post stukie99...

It would be a small bar focusing on Soulful/funky House music. The events and promotion side of things are no problem at all... I have all the connections needed in the scene (most are good friends) so things like the latest music on the scene that is straight out of the studio before hitting promo, live P.As, known guest DJs, radio DJs, release parties etc would be here.

Although it would be a bar selling cocktails, it would also sell cheap beer too, so that it appeals to a variety of customers.

I do like the idea in your post above, it's different!