If you’re looking for a fast-paced business where you can have hands-on experiences, then opening a bar, café or restaurant could be the perfect start-up business for you.
Many new bars and restaurants open successfully and become a vital part of the community, so why not consider starting up a business that can become your pride and joy? Here’s everything that you need to think about when starting a bar or restaurant.
Do Market Research
Before jumping in headfirst, you need to research and find out precisely what you’re getting yourself in for. This can be through gaining experience by working in or managing a bar, so you’re aware of what day to day business looks like in a bar or restaurant.
By gaining experience working on the floor, you’ll also gain better respect and appreciation for your staff in the future when you open your own setting, and the better the boss, the longer your staff are likely to work for you.
Once you’ve had experience working on the floor, you can begin your market research and identify a gap in the market locally that your business will fit into. You may already have an idea of the kind of place you want to open after visiting other businesses that are similar. However, through market research, you’ll find out information about whether or not your premise will be profitable and the kinds of food/drink people will expect to find there.
This information will then give you some idea of your target audience; their age, disposable income, their budgets, and occupations. You’ll then be able to make an informed choice about potential locations and gauge an understanding of the local competition.
Don’t be afraid to visit your local competitors. Through this approach, you’ll find out about events or promotions they offer, their price ranges, and even décor before opening your own setting.
Create an Online Presence
As you begin the process of choosing a location, start considering your online presence too. You can never start these things too early as a simple website, and social media accounts can build up excitement prior to your opening date.
Thankfully, starting up a website and social media accounts can be entirely free, or else come at a relatively low cost. You need to make sure that your landing pages are perfect, as they are the first part of your site that a potential customer sees. When it comes to creating landing pages, you can follow Wix’s advice on how to create a good landing page in under an hour in order to make the process as efficient and fruitful as possible.
Gathering a large following on your social media account with followers from the local area means your opening day could be much more impactful. You can gain customers who will return time and time again.
Finesse Your Concept
Once you’ve decided on the location, demographic and price points, you can start thinking about the general concept of your bar or restaurant. This concept needs to be unique and separate you from the other local competition, such as rooftop bars or wine tasting experiences. If you want to be even more original, consider opening up a science-themed bar or an “around the world” themed restaurant.
The possibilities are endless, but the most important thing to do is find your unique selling point and stick with it to entice customers.
Make a Business Plan
A business plan gives you the opportunity to get all your ideas down on paper and then share it with others around you. This should allow you to gather all your ideas in an efficient and orderly way.
Your business plan should also detail set-up costs, any investment that may be needed, and revenue projections in order for your business to work financially.
Set a Budget
When starting your own bar or restaurant, the budget should be no less than $30,000 on average, and you should expect that price to increase as your business becomes more established.
As well as stock and staffing costs, you need to factor in the cost of rent, which will vary from city to city. You also need to consider the cost of an alcohol licence if you’re serving alcoholic drinks, which again will vary depending on where your premise is based.
You must also consider insurance, not just for the building and the contents of your establishment, but also business insurance which protects you from any unforeseen circumstances.
Work Hard to Build a Loyal Customer Base
As we’ve already mentioned, a high-quality website and active social media accounts will help the popularity of your business. You’ve put in all the effort when it comes to research and investing your money, so don’t let all that hard work go to waste! It is equally as important to spread the word, and word of mouth in a local community can be the best way to increase your bookings.
The best way to make sure you received positive feedback is excellent customer service, so brush up your sales skills and make sure your team is trained to the highest quality.
Setting up your own business is an equally exciting yet challenging task, so be thorough, patient, and positive, and before you know it, your business will be booming!