I know that a lot depends on the location and things like that, I just want a ballpark figure.
2006-06-24 03:11:04 · 9 answers · asked by beeaggie07 1 in Business & Finance ➔ Small Business
The license will be anywhere from $10,000 to $150,000 or more, depending on where you are. Budget for 6 months lease (sign a longer lease but have enough money in the bank to cover 6 months). Inventory to open will be another $2000-10,000 or more. If you want to sell food, add another $2000-20,000 to your licensing fees. Furnishings, equipment... that may come with the space, or you pay for it. Payroll for the first 2-4 months. Business insurance will be $5000-20,000 or more per year. City and state business permits, tax certifications and all the other various licenses, permits and such will be another $2000-10,000.
More important are your costs for the first 2 years or so. Most new restaurants and bars don't break even in the first year. That means it costs more to be open than you bring in. So you'll be covering the shortfalls yourself as the owner--- particularly the liquor bills and payroll. And remember, as the owner, you're not on the payroll. Your staff gets paid before you do. And a lot of first-time owners don't factor that in, which is why 50% of these new businesses fail in the first year and only about 20% make it to the 5th year (search for Nation's Restaurant News, they have an online magazine somewhere with all these statistics).
You can make a lot of money owning a bar but it takes a while to get there. In the DC area where I live, it's well over $150,000 just to open the doors. In a rural area you may be able to do it on $50,000. But make sure you double your estimate, so once you open, you can cover the bills, till you start making money.
2006-06-24 04:01:18 · answer #1 · answered by dcgirl 7 · 0⤊ 0⤋
The best routes to take are to research the process of starting a business as well as the industry you're interested in.
I recommend checking out the SBA, Entrepreneur, The Start Up Journal & Nolo. All 4 are great informational resources for the new/small business owner. I posted links for you in the source box.
Associations may be a good avenue to explore as well. These organizations will address many of the thoughts, questions and concerns you'll inevitably have as well as many you haven't anticipated yet. See the source box for some relevant links.
Research, research, research – this cannot be stressed enough. Read as much as you can about the industry. Here are some book titles that are relevant:
* Start and Run a Money-Making Bar by Bruce Fier
* Upstart Guide Owning & Managing Bar or Tavern by Roy S. Alonzo
* Start Your Own Bar and Tavern (Entrepreneur Magazine's Start Ups) by Entrepreneur Press
* The Food Service Professionals Guide to Bar & Beverage Operation: Ensuring Maximum Success by Chris Parry
There are plenty of free informational resources out there. Check the source box for links to articles.
Hope that helps! I wish you much success & happiness in all your ventures!
2006-06-24 06:00:54 · answer #2 · answered by TM Express™ 7 · 0⤊ 0⤋
Figure in deposit on a location, first 4 months rent at least, stock of all supplies, tables, booths, bar stools, washing equipment, cleaning equipment, permits, sign outside, liquor license, etc etc.
Just to open a small hole in the wall I would easily place $25,000 just to start. A decent place that will hold 100 people I would lean more at $100,000 +.
To make money one must spend money, remember that rule.
2006-06-24 03:17:36 · answer #3 · answered by Anonymous · 0⤊ 0⤋
What is the cost of a "three way" license in your state? How big do you want it to be? How fancy do you want it to be? How good of a quality of liquor do you want to serve? Do you want to serve food? All these (and more) are variables that must be taken into consideration. Do you want to buy, or rent the facility? It's impossible to give you a figure without more info.
2006-06-24 03:17:06 · answer #4 · answered by Spirit Walker 5 · 0⤊ 0⤋
On top of actually business costs, in most states you have to buy a liquor license. This is basically the equivilent of extortion by the your local Government. Liquor Licenses can cost up to a 150,000. F***ing criminals are what they are.
-J.
2006-06-24 03:16:00 · answer #5 · answered by Jason 4 · 0⤊ 0⤋
My friend opened a bar in Atlanta, GA two years ago. He spent $70,000
2006-06-24 03:14:39 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Probably somewhere down the road a $1.00 per meeting seat at AA. Ha. Maybe the SBA could help you.
2006-06-24 03:43:18 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Lots of hard cash. Say ten grand
2006-06-24 03:14:09 · answer #8 · answered by kalabalu 5 · 0⤊ 0⤋
thousands. not to mention a license to sell "alky-hal".
2006-06-24 03:15:08 · answer #9 · answered by Anonymous · 0⤊ 0⤋