Is it possible to start a small bar with about $5,000-$10,000?
I want to start a small bar in MO, the location is going to be an old Wendy’s building and were going to lease it, we would only need a bartender as we would work the bar (I have a large family, so time is not an issue). We are going to lease all of the equipment needed as a security since this would be a start up business. The layout will be simple were going to do all f the work ourselves such as building the dance floor and the bar.
The building requires 00 down so we will have the rest of the money to use toward the inside… also advertising will be taking care of by the radio station.
I have seen plenty of similiar questions but they were not specific.
I have a liquor license and security is covered. Like I said before we are not going to need any outside help besides the bartender ( we have a dj, food is covered. Insurance is covered in the lease with is 0 a month (so its affordable even if all fails, also its a month to month lease as with the equipment)
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5 Responses to “Is it possible to start a small bar with about $5,000-$10,000?”
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i say , as long as your new bar has a very attractive name. a name that will make you think "yea, i wanna go in their for a drink" or for something to eat or a place to chill out.
if your new bar will be in the right area then thats the most important factor. busy streets , busy business.
everything needs to be good quality , modern and drinks beer needs to be that bit cheaper than your other local bars. music needs to be good popular not cheesy and not insulting.
the atmosphere needs to be friendly and welcoming , people want to feel like they are in paradise and treat your customers like gods.
it is possible it could become succsesful but that one bar will struggle to survive if it isnt busy isnt popular. if you can make it busy and popular and good quality with $10,000 then go for it. if it fails it fails being an entrepeneur is all about takeing calculated risks. if i was you i would create a buisness plan and a simulation. predict your first day week months earnings minus your outgoings make way for things that may cost you more. be realistic with the plan keep it low low low so if your busyier than your plan predicts then you know you will survive. good luck from Mrkev
No way. Don’t plan a business, or anything else for that matter, around "if everything goes just absolutely perfect…". It won’t. Sounds like a great way to lose $10000, and then have leases you can’t get out of. Have enough to get the business through 3 months minimum of all expenses plus the initial capital outlay.
Do you have a basic business plan? What do you anticipate your other expenses to be? Let’s see, you have labor covered, overhead covered ($2500 down and then how much, how often?), advertising covered (you don’t mention if you’re paying for it or if for some reason, the local radio station is comping that), you’re leasing equipment. What you don’t mention is your liquor license. Do you already have it? How much do they charge for that where you are? Insurance? What kind of insurance do you need? Is a jukebox covered in the equipment? If not, you need one. Are you having bands play there, or are you going to be too small for that? You have to stock the bar. Are you serving any food? What about a security system? People with the inclination to commit armed crimes like to knock over bars and other open-at-night places of business. You want to have that one-button triggering system to 911 that tells them who and where you are.
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Okay, so far, so good. If I were trying to do what you’re trying to do, I’d pick the person in your vast family who would most enjoy bartending and have them go to bartending school (National, American, and such). It takes two weeks and it only costs a few hundred dollars. Even on a shoestring, you can handle that, and it’s cheaper than paying a bartender. Whomever does it should have a really good memory. What they’ll need to know besides technique is how to make a lot o drinks off the top of their heads. Now, what about the physical exterior of the building? Who’s handling construction costs?
LORDREIT: I would guess that since they’re renting this space, if anything malfunctions, the responsibility probably isn’t theirs, it’s probably the landlord’s, but that’s a good thing to know. She’ll want to make sure of that.
It is possible, but bear in mind that most new startup businesses take a while before they pay off. Like 5 years on average (10-year-old statistic).
Starting on a shoestring means you might be able quick to recoup your initial investment fairly quickly, since the amount is so small. Still might be a while before you show enough profit to actually be making money.
I’d recommend you have at least a few months operating expenses put aside for when things don’t go just right… which will happen.
Multiply your initial investment by 10. It’s simply not possible to start a small bar in Missouri with $10,000.00. You can’t open a BBQ joint for that little! Suppliers aren’t going to extend credit. Your insurance will cost you more than that. A couple of slow days and you will be out of business. An unforeseen emergency — pipes bursting, tornado, employee theft, accident — and you’re out of business. If you have your heart set on opening a bar, work very very hard for somebody else and learn the ropes … then have him or her come in as a partner, if you still don’t have the large initial capital required.