Bar business plans are key to securing financing for your bar. Both lenders and investors use the plan to decide whether your bar is an acceptable financial risk. Even if you are not seeking funding, your business plan will serve as a guide as you start and/or grow your bar.

What to Include in Your Bar Business Plan

A bar business plan provides a snapshot of your bar at the current moment and defines your bar's projected future over the next five years. Clearly stated goals, expected challenges, and the ways you will overcome those challenges to reach your goals form the backbone of your business plan. As a living document, your plan will grow and change as your bar develops over time.

You should include the following sections in your bar business plan:

Executive Summary

As the introductory section to your plan, the executive summary is usually the last element to be written. Investors and lenders focus on the first page of the executive summary before deciding whether to read on, so lay out the most critical elements right away. Describe your bar in simple, concise terms. Provide a summary of your market analysis and proof that the market can support another bar. Also describe what makes your bar uniquely qualified to succeed. For example, will you be the only sports bar, or can you attract a unique customer segment?

Company Analysis

his section focuses on your bar as it exists today. Describe the bar's founding, legal status, and current business stage, as well as any accomplishments your bar has made to date. Expand upon the unique qualifications you mentioned in the executive summary. If you have a signature drink, or an existing customer base, explain those elements here.

In recognizing your standing within the local market, one of the first steps in opening a bar is to decide what type of establishment you'd like to run. Here are a few examples of the types of bars you might run:

Neighborhood Bar: These kinds of bars are typically small and cozy haunts visited by locals on a weekday/weekend for some drinks. They often have a very home-like atmosphere.

Beer Bar/Brewery: A brewery, as the name suggests, offers a huge selection of beers, including their own house draft beer and a selection of bottled beers.

Specialty Bar: This kind of a bar typically has a theme, for instance a martini bar. This bar will essentially serve different kinds of martinis, along with martini-based mixes and cocktails.

Sports Bar: These bars usually have a bigger food menu with options like sandwiches, burgers, pizza, wings, fries and other snacks. They host sports screenings regularly to keep the crowds entertained.

Industry Analysis

The industry analysis looks at your market and how your bar can compete in it. The market is the particular niche into which your bar fits, rather than the bar industry overall. For example, a sports bar has a different market than a neighborhood bar.