Have you ever thought of opening your own bar where you can treat your friends with free drinks and have great party listening to good music everyday, enjoying life? I’m sure some of us want to do that considering working in a bar setting is not only enjoyable but also very lucrative.

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Did you however know that almost 80 percent of all bars end up bankcrupt. If your business cannot survive the first 5 years, you’re out of business. Most bars couldn’t even survive the first 6 months! You need to consider your monthly costs, salaries, stocks, inventories, you get the idea.

There won’t be any pure profits in the first few months, you might end up with a negative figure in your accounting book. Your task as the owner of the bar is to make sure that your bar survive the trials and gain the trust and love of your customers before the profit start rolling in. Opening a bar is more than providing a cosy place for your friends to relax and enjoy their lives. It’s a business and you have to work hard to make it profitable for you.

The Approximate Costs Of Opening A Bar

How much you need to open a bar will depend on how big an are you want build your bar on. For a simple site buildout, you will need approximately $80k. You need to hire someone good to handle the interior and exterior designs of your bar.

If you want something fancier, you will need to pay more of course. You will also need another $15k for buying all the important bar equipments such as glasses, bartending kits, stainless bar sets, cocktail shaker and so on. Another $20k for the furniture. $10k for insurance.

Unless you have own the place, you need to put aside $60k (depending on the location, it can be as little as 10k if you’re lucky!) for your first year rent. $10k every month for replenshing your liquor inventories and $500 for your yearly liquor license. If you hire some staff, you need to make sure you have at least 6 months of wages to pay them. So adding them up, you should get a round figure of around 200k.

Where To Get Funding For Your Bar?

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Before you go straight to the bank to make a loan, you need to learn about bartending first. There are many bartending colleges and courses that you can enroll to gain that knowledge. Once you are confident that you can run a bar, it’s time to write down your business plan. You need to plan and you need to make sure that it’s logical and sound.

Why bother with all the annoying paperwork? Well, the bank won’t lend you money if they are not convinced that your little bar is going to make enough profit to pay them back. They need everything in paper, black and white. They want to know what is the financial goal of your bar and how much profit you’re going to make every month.

Would you be willing to lend money to some complete stranger who obviously have no way to paying you back? They want to know how soon you can pay them back with interest of course!