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How to Start a Bar/Club

How to Start a Bar/Club

Be the toast of the town, the life of the party--and a successful entrepreneur? Yep. You can have it all when you open a bar.

Entrepreneur Magazine

Calling your bar an operation fits because of how much operating it takes to keep it running. Someone will have to mind the store every minute your doors are open and some minutes when they aren’t, and your place will need some sort of monitoring during the off-hours to prevent vandalism or break-ins.

Many compare running your own business to raising a child. If true, then a smooth-running, problem-free, profit-making bar compares to parenting a happy, well-adjusted, self-assured teenager preparing for adulthood. But don’t worry, the bumps in the road hold the best lessons. And as with parenting, you succeed with consistency and concern instead of rigidity and blame.

The Road to Success

The groundwork you lay to operate your bar includes the systems you use to track liquor and food. How much does the customer owe the server/bartender, and in turn, how much do they owe you? Also, what liquor and food do you sell the most? The systems you choose depend on the type and size of bar you have.

In most bars, only the bartenders and servers handle money. Cashiers or takeout staff may also have cash-handling responsibilities. Factors to consider when choosing an accounting system include the level of sales you expect, both from alcohol and food, and the efficiency needed for your staff to operate at its full potential. Also, look for holes that your accounting system might leave open for theft at all levels, not just servers and bartenders. No one thinks they are hiring a thief. Many people who might steal if the opportunity arose do not consider themselves thieves, either, so they don’t come off as such.

If you use the cash-and-carry system, where the drink is ordered by the server verbally and then paid for before the bartender or server rings it up, you might find many “forgot to ring it up” drinks, as well as a few given away for free. It is the nature of the system. If your inventory controls are so tight that you will notice when too much has been used, or if your manager, who shares in the profits anyway, is your bartender, then you can use this system without much fear. Finding Your Perfect Location

Your choice of location will depend on how you want your bar to look, what you want your bar to contribute to the community, and the kind of clientele you want to patronize it. Then you need to decide whether you want to buy the location or sign a lease. Again, that depends on your budget. Finally, you need to figure out how to fuse your concept with both your name and your location to your best advantage.