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Bar Business Plan Successful bars are successful business's. Some bars maybe successful with educated guess work but most are bound to fail. In this article our goal is simply to delve into some simple business planning as it is very important when starting a bar or planning for the future success of your bar & have it operate as a business. This article is aimed at covering the some of the main components of a business plan. To help you succeed as not just a bar but a business. EXECUTIVE SUMMARY This page is an overview of your business, I would personally recommend doing it last but it should be the front page. It should contain a brief Description of your bar Business Motives Brief outline of Bars opportunities & Strategies Your bars Target Market Finances Required Financial Projections Your best & worst case Scenario The Bar Business Concept This is a key component because it represents your vision of your bar. What type of bar will your bar be? Where will you bar premise be? What is your bars vision? Why your bar will be unique? Once you have answered those 3 key questions its time to start setting your goals & objectives. A goal is a broad statement example I will have the busiest bar in Sydney. An objective however is part of a goal that also has a time frame example I will advertise every week in the Sydney morning herald for the first 6 month of operation. I recommend setting goals for each key component of your business example how much food you wish to sell. Next its important to list each service you will provide & a description of what it is. Then list the competitive advantages you have over your competition. How is what you offer better than what they are already getting elsewhere. Finally your major customer segment. Who are your customers? Where are your customers located? What do your customers like? LEGAL & ADMIN REQUIREMENTS This is really for your legal people an area I am not an expert in so just quickly some of the things that should be touched on. What will be your bars trading name? What will be your legal structure? What are your bars legal & Tax implications? Do you have any Business restrictions, requirements or regulations locally, state or federally? Do you have an patents or registered designs? Do you have future or present contracts? What insurance do you require? MARKET RESEARCH & ANALYSIS I can't stress enough how important this is because you need to know if your ideas will actually work in the real world, you need to know what it is your customers actually want. There are 4 area that you should research your customer base, your competition, current industry trends & Seasonal effects on your business. The customer My advice from a past failure is be objective & don't ask friends or family because they will not always be inclined to hurt your feelings. Work out what are the key area's that will make your bar a success & then ask your potential clientele what they think. Better to find out the areas of your concept that won't work before you invest huge amounts of money. A good example would be what type of food do your customers expect in this type of venue? The competition There are 2 types of competitors Direct & Indirect. A direct competitor is one who is normally close to your establishment & is competing for the same clients as you. Example is you have another competitor in the same street. An indirect competitor is one that could effect your business but is chasing a different client base. Example if you are a cocktail bar & there is a night club is across town. Your main focus should be on your direct competitors & establishing The products & services they offer, there competitive advantages in relation to you. There prices, how they promote there business, There strengths, There weaknesses, Their opportunities & What could potentially threaten there business. With your indirect competitors you should simply establish how they can effect your business & set a future date to plan how you can compete but your priority must always be on those directly competing. Once you have reviewed your direct competitors, review your bar & do are comparative evaluation this should allow to identify area's you need to improve on. MARKET SEGMENTATION & CUSTOMER PROFILE It is important to establish which customers you are trying to attract to your bar. Who are your customers? Why is your bar going to benefit their lifestyle & how much money do they have to spend? When I ask who are your customers Are they people who work in the area? Live in the local area or maybe both? Are they single? Are they married? How will you benefit your customers, why should they choose to go your bar in stead of all you competitors, what are they going to expect of you? Finally & very importantly how much money do they have to spend does your target market have enough stare money for you to financially gain. MARKETING PLAN Now that you know who your customers are, it is time to focus on how to market & sell your bar. There are all the little things such as business cards & brochures to consider plus the bigger questions of the best way to let your target market know how great you are. The options are endless but don't loose focus & remember your main focus should be on your target customers. Your marketing plan should include the marketing Activity activity details expected results time needed money needed who will do the activity. PRICING STRATEGY Plan out how you will price the products your bar supplies will you have set prices or will you have happy hours & prices that change at different times, will you have customer loyalty discounts, will you change your prices based on your competition. A key note when putting together your pricing is consider your customers & what they can afford to pay. CUSTOMER RELATIONS The key question you should ask yourself in relation to your customer relations is how can I build customer loyalty because not only will a loyal customer keep coming back but they will tell there friends how you are the best bar in town. Key questions to be addressed are how you will deal with complaints & how you will maintain existing relationships. PRODUCTION & OPERATION PLAN Simply put this is how you business will operate & what is needed for it to achieve the goals you have set. Equipment What equipment do you already have? What equipment do you need? What maintenance does your equipment require? Stock & Raw Materials What stock do you use? How often do you need it? What is the self life of that stock? Production Process What tasks needs to be preformed in operation of your business? What are the details of that task? What time is required to finish that task? Occupational Health & safety A bar is a high risk area, there are countless hazards to your staff. An injury to a staff member or customer can result in a large loss productivity or worse negative publicity. It is important to assess potential hazards the areas those hazards may occur & what action can be taken to reduce potential risks HUMAN RESOURCES Running a successful bar is not a solo job, it requires a team. So it essential to establish how many people you need to most efficiently run your business effectively. How many bar staff do you require? Do you need a supervisor? Do you need a manager? Do you need a Bookkeeper? Be careful to also establish any potential weaknesses & where training is required for your people. Training All successful business have training in place, remember that what's going well today may not tomorrow invest in your people as they are your future. Use there personal goals to achieve yours. Then there is the specialist external services required for example your legal & insurance people, your accountant or maybe even hiring in Earth Bar Consultancy & Services to help establish your bar. BUSINESS FINANCIAL PLAN Well we are all in business to make money if that is not a goal than odd are you will not be successful. This should be the back bone of your whole plan Establishment Costs & source of funds Pretty simply what money needs to be spent to achieve your bars business goals & where is the money going to come from. Analysis of financial tables As part of your bars business plan you should break down where you expect your money to come from. In monthly or weekly tables these should include cash inflow & cash outflow example of inflow how many Beers you expect to sell & how much you make from selling those beers? An example of outflow would be How many hours will I need to staff my bar & how much will it cost? This will also allow you to see if your bar has the capability of being a viable profitable establishment. Financial Monitoring It is important to evaluate possible threats to your bar business cash flow. An example in all bars is wastage & sometimes the number of free drinks staff give to there friends a plan needs to be in place for these potential problems. Also a change in interest rates could have an effect your ability to repay loans. Business Recording How will you record your bar business finances what software will you use. Budgeting for future How much of the money you make will you reinvest into your bar & where. The success of a bar is a long term investment. Example 10% of profits invested into future marketing campaigns. BUSINESS ACTION PLAN This an overview of every activity that needs to be done for your operation. It in short is a project list. It should include the Activity The activity details To be done by who & by when? Time required Money required  |
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Contact Details Earth Bar Consultancy & Service EMAIL : joel@earthbar.org
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Australian Business Number : 649 009 678 69
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