Real costs for opening a bar

When making a bar financial plan, there is a need in understanding of the cost of starting up the bar business before a cent of revenue comes in. Here are the things one needs to think about. new_bar

Property under lease Renovation

Renovation of the space rented or leased, termed as fixtures and additions to the space made by the tenant, can be an important cost, especially if the space was not previously used as a bar. Lighting fixtures, sound equipment, booths, the bar itself, and storage spaces are all incorporated in this category. Before starting the lengthy process of talking to all of the required contractors to do the needed work, consider talking to someone who has opened the same business, such as a bar or restaurant, to get a whole view of what the costs may amount to.

Liquor license

The liquor license can be a big cost, but the process of getting this license can raise this cost even more. It may be sensible to hire a legal agent to deal with the local and state government application process. Beyond the liquor license, there will be a payment for the incorporation and a general business license, and probably a certificate from the state or local department of health which oversees the safe service of food and beverages. Again, speaking with someone who has gone through the process before can give a brief estimate of these costs.


Bar supplies and equipment is also an important sum on glassware, bar tools, and furniture to anticipate spending with. Kitchen equipment will depend on the types of food planned to serve alongside drinks. Creating an atmosphere through the choice of specific glasses or furniture will costs higher. Receive catalogs from distributors of bar equipment to estimate these costs.

POS System

The POS or point-of-sale system makes the service process fast by allowing bartenders to use the software to select drinks, find the price, and make change. While not every bar has a POS system, it does create a control on bar transactions by recording the sales and creating a double-check system for inventory.

Advertising Costs

Advertising the bar is one way of marketing efforts and legwork before opening the doors which should be included in start up costs. Putting the right amount of cash into successful marketing tactics before opening will put the bar in the right position to hit the ground running when opening. Look at the costs of each method depending on the scale one wish to achieve.

Working Capital

Working capital is an additional defense of money which sees the bar through to the point where the incoming money from sales is greater than the money going out for all operating expenses. Only by creating a cash flow statement for the first year can estimate how much working capital needed to show a healthy bank balance at all times. If running out of cash and are late in paying vendors, risks of being black-listed by liquor distributors will happen and instead they will required to get paid by cash on delivery.