If you are reading this, you must be thinking or already planning on opening a bar of your own!
Whether you have experienced a novice in this industry, you will equally benefit from reading this guide on bar business planning.
Fundamental parts of a bar business plan
A good business plan for a bar should cover a wide range of topics that underline your vision and understanding of specifics. There are several must-have chapters you have to focus on in your business plan.
Start your business plan with a captivative executive summary. This part of your plan should demonstrate your vision of the bar, how you will approach your target audience, and, most of all, what business model you will employ. When writing an executive summary, you should not overwhelm the readers with excessive details – only mention the most crucial aspects.
If you are not sure how to write an executive summary, you may complete after you are done with the rest of the business plan. After all, your executive summary is a recap of the whole plan. Never forget that if you are looking for potential investors, the executive summary is where you have to put your best leg forward.
To make it in a service industry and gather investors’ attention, you will have to show extensive knowledge of related stuff. Market analysis is the section of your bar business plan where you compile and offer all the industry’s insights and expertise.
Start with describing the service industry’s overall state and make your way to specifics of bars, restaurants, and clubs. Describe how other foods and drink-serving establishments are performing and what challenges they face. Compare the market forecasts for the bars in your target niche and make projections for your business.
Also, include the description of the target customer and market segmentation pertaining to your particular bar vision. Here you should also have the competition analysis to draw a big picture of the market landscape.
Your bar menu is the cornerstone of success. With the intense competition at all times, new bars are posed to stand out with appealing offerings. Whether you are determined to double-down on classic cocktails or in pursue of a new school, you should describe it all in detail.
This part of the business plan is used to outline the main channels of reaching out to and retaining the customers. A successful marketing strategy usually relies on a mix of marketing tools, actions, and communication channels that help the business grow.
- Website. The website is the digital self of the bar. Having a strong online presence is appreciated by the customer. Use the website as the focal point of your marketing.
- A Position Statment. This section should describe your potential customers and your vision of the target market.
- Pre-open promotion. Describe here how to promote your bar before the big day. Driving the interest and curiosity among potential customers is key to initial success.
- Marketing Programs and Incentives. When the bar is opened, you need to incentivize the loyalty of the customers. Make a list of possible offers, sales, and discounts that can help to achieve this goal.
The location of your bar can make it or break it. Describe here how the location will help achieve your vision and business goals. In case you have not settled on any site just yet you should present a list of several locations with short commentary for each one.
Here you should include all the legal details of your upcoming bar. The form of ownership. Who are your business partners if you have any – mention them here. You can also include details of your rental agreement if there is one at hand.
This section of the business plan is used to describe the location of the bar and its design in detail. These details help to establish the uniqueness of your business among potential investors.
In the financial statement, you should include both the startup costs needed to open the bar and projections of sales necessary to keep the establishment afloat. Writing down a detailed break-even analysis will allow you to have a clearer picture of overall funding needed to facilitate your project. Needless to say, investors will scrutinize this part of your business plan the most if they are to back you with their money.
Additional Chapters to include in a business plan
Aside from the essential entries in your business plan, there are also aspects that you may or may not choose to mention. Depending on your particular situation you make want to include additional relevant information in your plan.
Partners and External Help
Perhaps, you are valiantly doing your best on your own to open a new perfect bar – kudos to you! But if you have partners and assistance in your pursuit – do mention it! If you already contacted suppliers, marketing specialists, and local authorities, you should say it is the business plan.
By doing so, you will send the right signals to potential investors. After all, one rarely does it all by themselves alone!
The recent pandemic crisis underlined the necessity for solid contingency planning. If you are not sure, your bar will be open at all times – elaborate on how you will counteract such downturns. You can place your bet on online marketing and drinks-to-go. This is definitely an optional part of your business plan, but it can show that you are ready to deal with potential challenges.
Good planning is rewarding!
When you have a bar business plan ready and polished at the end of the day, you’ll have a better perception of things ahead. Starting a new business in a highly competitive niche may be challenging and tricky, but thorough planning will help!