Ditch everything or wait until retirement to open a bar: many people dream about it and take the plunge. So, how do you go about setting up your own bar?
First step: find an idea or a conceptFirst of all, before getting started, it is essential to think about the concept of your establishment. What would make customers stop by your place more? What do you want to bring out? What atmosphere do you want to create? At first glance, these are harmless questions that will make your bar a success.Therefore, it is crucial to start after studying the local market, comparing several locations, maturing and weighing your decision.The location of your bar is very important, especially whether you are located on a busy street or not. The location is not to be neglected because it is easier to make yourself known when the area you are in is conducive to going out.Similarly, you need to work on the decoration and atmosphere of your bar. Don’t hesitate to ask your friends and family for their opinion and put yourself in the shoes of a customer: what are they looking for in a bar? Regularly the answer can be summed up in two words: conviviality and price.Draw up a business planOnce you have refined the concept of the bar you wish to create, it will be essential to study the viability of the project by setting a provisional budget. To do this, you need to set the prices of your card (don’t forget to take into account VAT), establish the margins you want to generate, allocate a budget for equipment, plan salaries, etc. Once all these elements have been mastered and adjusted to the local market, you will know if your business is viable. Knowing how to write a business plan is not an easy thing, it may be necessary to get help for this step. In any case you can start by using our business plan template for a free downloadable bar.Setting up a company, buying a company or renting a bar?When you open your bar you will have several options. Do you prefer to create your company and develop your concept on your own? Would you prefer to go through a lease management to test the ground before buying? Or buy an existing business? Let’s specify each of these possibilities.Opening your bar by creating a company: this means that you start from scratch and that you will have to set up everything. You will have to choose your legal status, draw up your own articles of association, register the company, find an accountant, employ employees and manage your company so that it can exist with the various institutions.Going through management leasing: if you are not familiar with this term, you should know that management leasing allows you to lease a business for a certain period of time through a contract. For example: the owner rents his bar for a certain period of time and the tenant is then considered to be the manager, i.e. the bar owner has no say in management decisions. The management lease is often a preliminary phase to the transfer of a business. The tenant is then able to assess the profitability and potential of the bar before deciding to buy it back. No purchase or sale obligation is due following a management lease because neither the owner nor the tenant is obliged to sell or acquire the bar at the end of the management lease contract. Buying an existing bar: if you find a good deal with an existing concept that comes close to what you wanted to do, you can buy the bar directly. With this solution you invest a lot, but it is a solution that is often seen as reassuring in that you are going to invest in something you can already visualize.Fifth step: renting or buying your premises?Whether you want to open a wine bar, a tapas bar or a nightclub, you need to have a place. However, you don’t know how to set up yet? If you go through a rental management contract the question does not arise, but when this is not the case there are two possibilities available to you in terms of premises:Being a commercial leaseholder, which implies that you are a tenant; Buying premises, which requires a substantial investment.In reality it is rarely a choice, as opening a bar and buying premises are two very important investments. It is not common to have the financial means to make both investments at the same time. This is why it is often the case that opening a bar is accompanied, at least initially, by a rental of premises. However, there is nothing to prevent you from buying your premises later on if your bar business prospers and you have the means to do so. https://www.yelp.com/nearme/tapas