How to open a pub or bar

Before you even open the bar, there will be some unpleasant, formal work you will have to do. Especially when you want to open a pub, where alcohol will be sold, you need to do the paperwork correctly and neatly. Research all the licenses and permits you will need for your specific area. Think about the more specific ones such as:

• Alcohol license
• Food-handling license
• Music license
• Health and safety license

If you have already chosen a location and want to renovate it, also think about building permits. You should consider all these permits and licenses in your start-up cost.

Besides researching on the licenses, you should also look up funding and financing options for your bar. Taking the initial start-up and on-going costs of running a business into consideration, you will need a good amount of money. If you do not have enough of your own or maybe a heritage, you should think about taking out a loan. You can also look for investors as another option. Also, you can sign up for a business loan, which not only helps you with your opening costs but also can be used later for growing the business. Another financing option is crowdfunding.

Bear in mind that the last three options require a good business or project plan that will catch people’s attention. It should make them so impressed by your idea, that they want to invest in it. Therefore, you will also need to be innovative and present them something new and original. This leads us to the next point.

Whenever you look up how to start a business, the first thing that will pop up is a business plan. This is a very important document, a written plan that leads you through your journey to the top. It includes all the essential information about your business concept, your idea, your location, the team, the management, the products and services, marketing strategies, finances, and many more aspects.

A business plan serves as a guide through every step of opening a business. You can always come back to it and look up the following steps, as well as optimize it as there might occur changes of plans while following through with your business plan and milestones.

A well-thought-out business plan can attract investors and people for crowdfunding. It also explains your concept to potential business partners. This increases your chances of spreading the word about your business and becoming successful with it. Part of your business plan will also be sorting out some places, where you want to settle down your bar.

Bars are very much dependent on where they are located. When it comes to choosing the right location for the pub, you need to ask yourself the following questions:

• How much food traffic am I aiming for?
• Who is my target group? What do my customers look like?
• What is the average time, that my customers will spend in my bar?

After finding the answers to these questions, you will find yourself with a smaller range of options. Then you need to rack your brain on the following, most important points:

Style: Will you have a neighborhood pub or a casual one? Formal and elegant, or informal for a younger audience?

Demographics: Even the smallest city has different areas with different demographics. Depending on your target group, you will have to search for a location in a specific area. For example, if you are aiming for college students, you might as well need to open near a university. If you are aiming for a more formal bar, you might look around the more affluent parts of the town.

Accessibility and parking: The ideal state is when the pub is directly nearby the public transport and has parking lots around it. Especially parking should not be an issue. In any case, the best thing is when the location is in a big, crowded and very lively street, especially at night, because pubs and bars are something for the nightlife.

Zoning restrictions: Be careful when you find your location. Do not take any further steps before looking at zone restrictions. There are some areas in a city, where you can’t open a bar. Look that up to avoid making mistakes.

Rental and utility costs: Every location has its own rent and utilities. The cost estimation should be done in your business plan. You have to ask yourself, if you will be able to make this up with sales and if you can keep the bar going to a point, where rent and utility costs will not be a problem anymore.

You should consider talking to the local chamber of commerce. They can give you useful information on your trade market. Also, you might consider working with a real estate agent. He can help you find the best location with the most affordable prices.