use the plan to decide
Start writing a post
Lifestyle

use the plan to decide

use the plan to decide

8
use the plan to decide

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.

Customer Analysis

The customer analysis breaks down your specific target market into demographics and clearly explains how you will fulfill their needs. Here are example customer segments for a bar: beer/wine/whiskey connoisseurs, professionals, college students, people who like to socialize. These are just wide categories, and require further research and subdivision for accurate targeting. Depending on the type of bar you decide to open, there might be a niche audience for your business too.

How do your target customers make their purchasing decisions? Do they shop on price, quality, premium service, or something else? How will your bar meet those specific customers' unique needs?

Industry factors such as 'no drinking and driving' and an evolving health conscious population may also affect segmentation.

Competitive Analysis

Your competitors are divided into two categories. Direct competitors serve the same target market for the same need. Indirect competitors differ from you in either target market or specific need. For example, another bar around the corner would be a direct competitor while a liquor stores is an indirect competitor.

In your business plan , detail direct competitors individually, focusing on what makes your bar different. Group your indirect competitors together and mention them as a whole.

There are multiple ways to differentiate your bar from competition. For one, you could decide to open a specialty bar and focus on certain types of drinks (e.g, wine, gin, beer, whiskey, etc.). Service also makes a huge difference in attracting crowds; offering something unique like an 'unlimited refills night' or being generous with free bar nibbles could help you build a loyal customer base. You could also consider hosting entertainment nights with live music, stand-up comedy, karaoke etc. to keep the audience entertained.

Stocking an exclusive collection of alcohol from around the world is also one way to stand out in the market.

Marketing Plan

Traditionally, marketing plans are based on the four P's: Product, Place, Price, and Promotion. In the bar industry, your primary focus will be promotions. Promotions is how you will lure customers to spend money with you. Customer retention, or how you will convince purchasers to return, is also an important part of marketing.

Marketing is critical when it comes to new restaurants and bars. You can't expect to start a bar and suddenly see a pool of customers walking in. Some amount of paid advertising in newspapers, radio and/or online will be necessary to spread the word initially. Or having customers come in to give them a sample of your offerings. Ultimately, you would need to leverage the power of social media like Instagram, Twitter and Facebook to connect with new and existing customers. As part of your marketing strategy, you could also run contests and host special nights to attract more customers.

Management Team

The management team section highlights the skills needed to build and maintain a successful bar. Provide biographies of your key management team members, focusing on the specific educational background or hands-on experiences that prove their ability to run a business. If your management team has weaknesses in these areas, a strong advisory board can help. Be sure to clearly explain what the board members will do to directly improve the company's growth.

It is difficult for a bar to be a success in the absence of a good staff. You need to hire excellent bartenders who know their craft. They need to be creative, excited and motivated about coming to work each day and making and serving superior drinks to your customers. When hiring, consider both the personality and skill of the potential bartenders and how they fit into your vision. Remember bartenders will ultimately become one of they key representatives of your bar.

Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
beer on the beach

Summer is hot and humid, and it's almost like summer was made specifically to drink the refreshing, cold, crisp wonderful, delicious, nutritious nectar of the gods. Which is none other than beer; wonderful cold beer. With summer playing peek-a-boo around the corner while we finish up this semester, it's time to discuss the only important part of summer. And if you haven't already guessed, it's beer. There are few things I take more seriously than my beer, in order are: sports... and beer. Here are my favorite summer brews:

Keep Reading...Show less
Featured

7 Reasons SoCal Rocks!

75 degrees and sunny, plus, no humidity. I mean do I really need to say more?

1296
woman in black and white long sleeve shirt carrying girl in red jacket in Venice beach
Photo by Jeff Hopper on Unsplash

SoCal summers are the best summers by far, and honestly, no argument is needed. But, if you aren't sure why SoCal summers are the best, here are 7 reasons why!

Keep Reading...Show less
Entertainment

25 Lyrics for Selfie Captions

Because let's be honest, we all use lyrics.

53685
woman takes a selfie for social media
Pixabay

Sometimes you can't think of the perfect caption for your Instagram post. I love using lyrics as my captions because there's so many great lines in songs that just seem to fit in the moment. Here are some lyrics that could work for your selfie or pictures of you with your friends!

Keep Reading...Show less
Entertainment

Bruce Springsteen's Top 7 Lyrics

Everything Bruce says in his classic rock songs.

20148
bruce springsteen album cover born in the usa

Anyone who was born and raised in New Jersey (or anywhere really) knows of Bruce Springsteen, whether or not they like him is a whole other situation. I hope that his hundreds of classic rock songs and famous high energy performances, even in his sixties he can put on better concerts than people half his age, are at least recognizable to people of all ages. Love him or hate him (I identify with the former) you have to admit that some of his songs and interviews have inspirational quotes and lyrics.

Keep Reading...Show less
Lifestyle

New England Summers Are The BEST Summers

Why you should spend your next summer in New England.

4503
Marconi Beach

Three years ago, I chose to attend college in Philadelphia, approximately 360 miles away from my small town in New Hampshire. I have learned many valuable lessons away from home, and have thoroughly enjoyed my time spent in Pennsylvania. One thing that my experience has taught me, however, is that it is absolutely impossible to beat a New England summer.

You cannot beat the beach. Believe it or not (which many people may not), New England has a long and beautiful coastline. Most of my high school summers were spent sitting on the Wall at Hampton Beach, getting sunburnt and eating Acai bowls from The Secret Spot. The Wall was the place to be both during the day and at night. We begin our days there with a KB's bagel and coffee, and end them with pizza and ice cream. It’s not a New England summer without that 4 p.m. text from someone, “Who wants to meet at the Wall tonight?” Nighttime is for Tripoli’s Pizza, the sound of waves, and wishes on shooting stars. Wednesday nights are especially important, as those are the nights that Hampton Beach sets off the weekly firework display.

Keep Reading...Show less

Subscribe to Our Newsletter

Facebook Comments