| Jul. 02 2008 at 9:53 AM |
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Alright, my name is Chase. Soon enough, I'll be getting back from another tour in Iraq, and out of the military. And I can't think of a better idea than opening a bar. Specifically towards the motorcycle enthusiast crowd in central North Carolina. I know what I look for in bars that I go to, and I've yet to find one that is everything I want it to be, thus my reasoning for starting my own. In the area, there just isn't anything that brings it all together. Okay, now for my questioning. What is the best route for me to aggressively take this on. I was obviously heading straight for some business education as soon as I get back, at learn the basics as fast as I can. I am married with no kids and my Wife has experience from running her families establishments back home, and she is game for me doing it. But I am asking is it possible for a young guy like me, that is not gonna have too much of my own money to go at this, to make it work. What about book reading, what is the best book out there for starting your own bar? And I'm looking for some general start up costs, what its taken some people to get going. I just feel like I have a great idea for this thing, but very little of the knowledge to make it happen. What are some time estimates on how long it takes from idea to opening up? Sorry for being quite uninformed on the subject, but this is my goal. Any places for me to go and get some more information on bar owning, anything is appriciated. Or if you all can ask me more questions to get my planning going better, that will be welcome also.
Thanks alot
Chase J.
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| Jul. 02 2008 at 2:35 PM |
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Welcome and come back safe !
I've been in the bar business, as an employee and it's a tough business but the owners I've worked for have all been very successful. I would suggest getting to know some owners of bars in the area you're looking at without telling them you want to start your own bar. I would get a job at one and learn all you can even if it's part time. I can't possibly tell you all that's involved. In MI, a Liquor License is VERY expensive, VERY limited in number, and VERY difficult to get. This varies from state to state and city to city. You may also consider buying an existing bar. There's really a lot to the business. Liquor Control Commission can be dificult. If you serve food, which you should, then you have to deal with Health Department.
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| Jul. 02 2008 at 2:53 PM |
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I read your post and for the first half, was skeptical. Running a
successful bar is one of the most difficult enterprises. It looks easy,
but it's a real problem.
Then I read that your wife has run several family establishments
already. Assuming that means related businesses, like other bars, your
"credibility level" instantly tripled.
See?
You're likely going to have to get some financing, probably through a
business loan. Generally speaking, many lenders already know that a bar
is a risky venture. They also know that background, experience, and
knowledge of inventory, etc., are key.
The book learning and business courses are absoluely a great idea.
Without understanding the fundamentals of business, nobody's going to
make money. So you should certainly get into that. But in terms of your
proposal, you'll want it focused very heavily on your wife's existing
background and experience.
The other aspect of the proposal will be a well-thought-out financial
section of your business plan. As soon as you mentioned "motorcycle,"
you introduced "biker bar," and all the pejorative images thereby
associated. Leave that out.
You can "decorate" your bar or build it around a "theme" in whatever
way you want, just don't talk about opening a "biker bar." So what if
it'll be middle-aged men driving Suzuki bikes, wearing polo shirts. :-)
You don't really need to discuss that all in the presentation to your
lender.
Instead, focus on square footage, costs for intallation and major
purchases, licensing fees, inventory, location, plumbing, and projected
market. Have your best case, worst case, and expected case numbers,
along with your structures of when you expect to break even.
Your military background is a strong benefit, not only in possible
government help for veterans, but also in your natural association with
discipline, honor (for paying back the loan), stability, and
stick-to-it-edness. So you could consider building on your wife's
financial knowledge and your operations experience.
Craig Landes
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Defining the undefinable. "There are 10 kinds of people in the world---those who understand binary numbers and those who don't." - Unknown
---
Success = Passion, Patience, Persistence!
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| Jul. 03 2008 at 12:08 AM |
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Wow, I definitely didn't expect to get such sound advice back on my post. Definitely opened up some things I haven't thought about yet. Its all much appreciated. Alright, so I'm going to open just a regular bar now, or pub, without the other labels.
Yes, my wife has been in the bar/restaurant business since she was young and does have much knowledge on running the place.
Now let me ask about writing a business proposal, since I believe this is the next step after solidifying your idea. I understand that to get a good look at what its gonna take, some surveying and general inquiry will be taking place. I have a few local contacts that have or are still running successful establishments in the area, so am I going in the right direction? Lets say as far as getting general figures first, or what other information should I be trying to obtain? I'm guessing when I get to talking to these managers and owners, it would be a good idea to ask what there patronage is like through the week and different months, the volume of alcohol coming in and out, average costs for things of that nature.
Is this what I should be doing? What is the crucial information I need to get to begin outlining a plan? And how many people try to draft the plan themselves? Or is this something you want to get professional assistance with.
The small things with this I am not too worried about, by small I mean finding all the equipment for the bar, location, obtaining a building and dealing with the abc. That would be what I am most familiar with. What I am at a total start point is, Getting the loan, Writing a business plan and all the things in it.
As I read more across the internet I am definitely broadening my perspective of things. Especially through both of the replies to this post.
Look forward to more insight,
Thanks
Chase
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| Jul. 03 2008 at 2:01 AM |
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Hi Chase,
What I'd suggest would be to use your interviews and discussions with the contacts and friends you have in the business, to create the overall outline of the business plan. If you use a template for a plan, it can work...but it also can gloss over or miss important parts that are specific to the liquor and entertainment business.
Take notes when you speak with your contacts. You might set it up as a formal meeting, rather than just catching them "around" and talking casually. As they talk and you ask general questions, keep those notes. When you've spoken with them all, then you can use the notes to form your outline headings, following the "Summary" (or Executive Summary, or Overview).
The global categories will be such things as location and real estate estimates, traffic projections, market research and probable-estimated traffic, marketing costs, and then financials. Within the financials, you'll have your summary of main items, then your secondary documentation.
In the secondary documentation, which you can do as a sort of appendix, or "Exhibit A" type thing, you'll have line items for almost everything. For instance, how much will your tables cost apiece, for each type of table. What about booths and banquettes. How about the bar itself, along with barstools. What fixtures and finishings will you be using.
Then there's things like a jukebox or music system, vending area, carpeting (cyclical carpet cleaning too), ceiling (acoustical tile?), bathrooms, grill and kitchen if you'll have that, and the list goes on and on. You'll even have to price out things like salt and pepper shakers, straws, napkins, lemon squeezers, shot measures, trash cans, and so forth.
A spreadsheet obviously is the way to go with this. Again, it's an "exhibit," which you refer to in the body of your financial section.
So to answer your question, your proposal may end up being only a couple of pages, depending on who you're presenting to. But they may want to see ALL the details, depending on who they are. It's not that you would do all this instantly, but that you work it layer by layer, sort of like a "spiral."
Go through the whole thing on the first level, with general statements for the main things. When that's done, start over, and add more detail (granularity, if you want the corporate jargon term). :-)
Craig Landes
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Defining the undefinable. "There are 10 kinds of people in the world---those who understand binary numbers and those who don't." - Unknown
---
Success = Passion, Patience, Persistence!
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| Jul. 03 2008 at 10:27 AM |
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All great points ! I've written 2 business plans for friends. I bought a 'how to' book about writing business plans and I'm glad I did these myself. Writing the plans myself forced me to look at all aspects of the businesses and many things I would have never thought of. In the end, I felt I could answer any question reguarding any aspect of each business.
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| Jul. 03 2008 at 2:57 PM |
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Was the book specific to the restaurant/bar business or just general?
I wouldn't mind knowing the title, I may have to get a hold of a copy. Would it be smarter for me when I get to a point where I actually have something, to collaborate with someone with experience in writing business plans, or did you feel capable on your own?
Thanks for all the help and will take in as much as you all will give me.
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| Jul. 04 2008 at 12:13 AM |
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Writing a business plan is only threatening when you're intending to
present the plan to heavy-duty financial lenders. They may be
investors, venture capitalists, bank loan officers, or whatever else,
but they're used to making people freak out. :-)
The basic reason we make a business plan is very similar to putting
together an itinerary for a vaction trip. In the excitement of the
action, we don't want to forget certain important things. One of those
things is, "why am I doing this at all?" That's the mission statement,
and the life plan part of opening a business.
Another important part of the business plan is just what Saber102 is
saying: It helps us to really focus down in detail on the many specific
details involved. Here's another way of putting it.
Suppose you want to build a robot, and your first thought is you'd like
it to open the door for you---a sort of butler to impress your friends.
Think about opening a door. It's something you do all the time, so
you've totally forgotten all the bits and pieces that go into the
process. To begin with, you have to locate the door. For you, it's
simple---you just look around and go to the door. But to the robot, you
have to tell it what "look" means, and what "around" means. It has to
recognize the front door as different from the closet door, bathroom
door, bedroom door, and refrigerator door.
When it gets to the door, how hight should it raise its hand? Which
direction should it move its arm? How much pressure should it exert on
the handle? In which direction should it turn? When should it
pull---how does it know?
See, the details of a process are many and they're sometimes simple,
other times complex. You go to a bar and order a 7-and-7. Fine; how
many glasses do they have? How much liquor do they have? Where'd they
get the ice? How often do they get a soda delivery? From whom do they
get what kinds of deliveries? Where do the trucks park? Where do they
store kegs of beer, versus bottles of liquor? Is there a refrigerator
behind the bar, or more than one? How big is it?
As you build a business plan, it helps you to envision the actual bar
itself. You can start to see it, and see yourself working there each
day. You envision a customer coming in and......what? Do they sit down,
stand at the bar, or sit at a table? Then you ask yourself where all
that "stuff" came from, and how much did it cost. See?
The actual writing out of the whole thing can be a collaborative
effort, but my guess is that you can do it all with your wife. She'll
have lots and lots of questions and ideas, and between the two of you,
it can most definitely be a whole lot of fun. :-) Don't freak out!
Don't think you have to make a business plan look like a book example.
It's a "to do" list, with just a lot of details.
Craig Landes
---
Defining the undefinable. "There are 10 kinds of people in the world---those who understand binary numbers and those who don't." - Unknown
---
Success = Passion, Patience, Persistence!
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