Bar businesses are growing. Especially due to the increase in alcohol consumption and nightlife culture amongst the younger population.
But all of us know that a bar business is much more than just alcohol. It is also a good profession for people who like to socialize, talk to new people, and are lively and cheerful more often than not.
And the best part is no industry giant holds a huge chunk of the market in this business.
Sounds good, right? But before you go ahead and fulfill your long-standing dream of having a bar, you’ll need a bar business plan and we are here to help you with that, Here’s a quick overview of the industry.
The bar industry stood at a massive market value of 25.09 billion dollars in the US in 2021. And is going through a phase of rapid recovery after being hit by the coronavirus pandemic.
The bar industry covers the broad spectrum of nightclubs, bars, and other such establishments that serve alcohol and snacks. The revenue for nightclubs also comes mainly from the sales of alcohol.
Increased acceptance of alcohol and an increase in disposable income of the younger population, mainly the millennials has led to the growth of the bar business.
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As a bar business staying on the right side of the law is more important than anything. Having all the necessary licenses and permits lets you run your business smoothly and without any chaos.
Here’s a list of licenses that you’ll need:
You might need more depending on the laws of your state and locality. Get all the necessary permits to avoid hassles as well as to ensure your customers and your own safety.
In the case of a bar business, the location is usually the whole and soul of your business. The right location would be a preferred hangout spot for your target audience, easy to access, and not overly crowded.
The factor that the locality has your target audience or not would be a major deciding factor in your bar business’s success.
Knowing about your target audience gives your business the head start it deserves. Study everything from what your target audience prefers when it comes to food and beverages, what additional services they expect, What kind of vibe they prefer, and obviously, what is the right location to cater to them.
A major aspect of the bar industry is that it doesn’t really have any big players but several small businesses that compete with each other. And if you want to stand out amongst all the hustle and bustle it is important to have a unique theme that appeals to your target audience.
A business plan helps you develop the right perspective toward the industry you plan on entering.
It not only helps you with market analysis and management but also acts as a guide in your business journey.
If you plan your business well, you get an edge over poorly managed entities and unaware owners who did not conduct market research before starting the business.
Specifically, when starting a bar business, a business plan helps you in making cost-effective decisions when you begin, so you don’t have to worry about haphazard finances later.
And as you know the benefits of having a business plan now, let’s discuss how to write an effective plan.
Although you can write a business plan on your own from scratch, it is always good to get a little guidance when writing one.
Thanks to technology, there are several options available, and you can choose the one that fits the best for you.
You can either go to a business consultant, design your plan based on a predesigned template, or get a customized plan for your business through an online business plan software without going anywhere.
All businesses like bars, pubs, lounges, and nightclubs come under the aegis of the bar business. All of these are drinking places that primarily serve and prepare alcoholic beverages.
Moreover, it is an industry where there are no market leaders who hold a big share in the industry’s value, but small fragmented units amongst whom the industry’s value is distributed.
Now it might look like a lucrative business to enter, but a lot of bar businesses fail due to bad financial and employee management. They end up overspending and working their employees to the point of exhaustion.
You don’t have to worry about it though, the above problem has a quick and easy solution: A business plan.
Yes, you heard it right, a bar business plan can help you solve all the management and planning-related problems.
If you are planning to start a new bar business, the first thing you will need is a business plan. Use our sample Bar business plan created using upmetrics business plan software to start writing your business plan in no time.
This is the standard bar business plan outline which will cover all important sections that you should include in your business plan.
Before you get started with writing your business plan, let’s understand each section in detail:
An executive summary is the most important document of your business plan. It is crucial to get you funded as a business as it sums up everything your business stands for.
Chances are that the investors might not even read beyond this section.
Therefore, when you write it make sure you sum up your business idea and its functions properly.
In this section, you will include an overview of all the chief needs of your business.
In a bar business plan, the chief aspects would include the location and its accessibility, the legal rules regarding alcohol followed by the area as well as the primary legal formalities involved in running a bar.
This section includes all the products and services you’ll offer.
Resources for getting the products, especially in the case of a bar business the formal procedures involved in acquiring alcohol should be included.
It is also good to note down the differentiating factor between your and your competitor’s product.
Market analysis is another crucial aspect of a business plan. It comes in handy while assessing strategies and techniques that work and do not work by analyzing your competitors.
It also helps you get information about the size of the market and its growth potential.
It helps you to know your target audience and segment of the market that forms the majority of your client base.
Based on market analysis, next up you’ll formulate your marketing strategy.
While formulating your marketing strategy you should always keep your unique selling point and target market in mind.
Apart from that your positioning in the industry is also a critical aspect of your strategy implementation.
In addition to all of the above, advertising strategy is an aspect a bar business has to pay special attention to, as a direct advertisement of alcohol isn’t allowed on various media platforms.
This step is also especially important in a bar business plan to avoid overworking employees, create good and respectful relations amongst the team, and have strong teamwork.
You should also include various roles and responsibilities of different people in your organization as well as ways of tracking their performance in this section.
Read More: How to Write Management Section of Business Plan?A financial plan is important because it prevents you from overspending and optimally distributes your cash flow amongst various segments of your business.
Apart from that in a financial plan, you can also carry out an analysis of your financial history as well as funding options for your business.
The above-mentioned order can help you write a well-rounded plan. But most importantly, while starting a bar business it is important to keep the legalities involved in mind.
You should always watch out for the current and potential alcohol laws that would have an impact on your business and frame your business strategy accordingly.
Hence, you should frame a business plan that is flexible and dynamic and thus, can help you succeed in the bar and pub industry.
Read more: How to Create Bar Financial PlanTo create automatic financials for your own business plan, we recommend Upmetrics. Create your own business plan
Need help writing your business plan from scratch? Here you go; download our free bar business plan pdf to start.
It’s a modern business plan template specifically designed for your bar business. Use the example business plan as a guide for writing your own.
The Quickest Way to turn a Business Idea into a Business Plan
Fill-in-the-blanks and automatic financials make it easy.
A bar business can be extremely successful and smooth if you go about it with a business plan.
A business plan helps you keep all the facets from legal to financial ones in mind while running a bar business, thus making the process easier and quicker.
After getting started with Upmetrics, you can copy this sample bar business plan template into your business plan, modify the required information, and download your bar business plan pdf or doc file.
It’s the fastest and easiest way to start writing your business plan.
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About the Author
Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more
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