How to Start a Pub Business

Thursday, May 2, 2013

How to Start a Pub Business

While many have had the idea to start a pub business at some point, few actually open the doors of their dream business. If you can get past all of the struggles that could potentially come with this project, opening a bar could be very lucrative business project. When you start a pub, it is important to engage in some research and planning to make sure that you pick the best location and theme for your business.

Step 1
Create a business plan for your pub. This includes doing research on the competition and the area. In the business plan, you will explain how you plan to make money with your pub. Outline the structure of your business and the business concept. For example, most pubs have some type of theme, such as a sports bar or an Irish bar. Include this information so that investors or lenders can evaluate your business concept for originality and plausibility.

Step 2
Register the name of your bar with the county clerk. Set up a legal business entity so that you can limit yourself from personal liability in case any customers file lawsuits against you. This is done by filing articles of incorporation or articles of organization with your state to set up a corporation or a limited liability company.

Step 3
Lease or buy a location to set up the pub in. When starting a bar, the location is one of the most important factors to consider. You need to find a location that gets a large amount of traffic and is close to areas that have a vibrant night life.

Step 4
Obtain financing for your business if necessary. If you do not have enough money in savings to pay for everything, you will need to seek out financing from an outside source. This could come in the form of investors or you could get a commercial loan. Show your business plan to the investors or lenders and use it to secure the money you need.

Step 5

Equip the bar with the necessary items to serve customers. You will need a draft system, glasses, plates, silverware, furniture and a sound system. You will also need appliances to prepare the food and to clean the dishes for the bar.

Step 6
Get the necessary liquor license and health department permits for your bar. Before you can serve any food or alcohol, you will need the appropriate permits from your local government.

Step 7
Purchase an insurance policy for your bar. For a bar, you will need general liability protection, as well as property protection insurance to protect your building and equipment.

Step 8
Make the menu for your pub. You will have to decide what drinks and food you will carry. Then create the menu, based on the selections you choose. For example, you could have a very wide array of drinks and go for variety, or you could focus on a limited number of beers and keep things simple.

Step 9
Hire employees for your new business. Even if you plan on working in the business, you will need some other employees to help you run it. This could include bartenders, cooks and a wait staff. In some states, your employees may be required to have individual food and liquor handler's permits. When you hire employees, you will also need to get worker's compensation insurance and register your employees with the Internal Revenue Service so that you can withhold money for taxes from their paychecks.

Step 10
Advertise your new pub business thoroughly. When you have a new bar, you will need to work to promote it. This could involve passing out fliers or promoting your business through radio and television spots. Using cross-promotions with other non-competing businesses may also be a good idea. You need to get the word out to customers about your business.

Tip

Spend extra time making sure that you choose a theme for your bar that is not overdone in the area. For example, if your area already has seven sports bars, you may not need to add another competitor to the mix.

Warning

Pubs and bars are very risky businesses. You never know in advance if it will be a major success or a disaster. Understand that any money you invest could potentially be lost.

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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Thursday, May 2, 2013

How to Start a Pub Business

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