It’s an exciting initial step to decide to create a pub. When launching a new business, such as a pub, it is critical to have a good pub business plan. Business plans follow a tried and true formula, but if you’re opening a pub, you need to take a more specialized approach. Have you always dreamt about how to operate your own pub but aren’t sure how to begin? You’ve undoubtedly considered your idea and name, but perhaps you’re unclear about the ins and outs, such as how to secure funds and licenses. You are going to get answers to them in this article because we are going to talk about how to start a pub business, the 10 steps to take when writing a pub business plan, the template and the example.
Let’s kick off!
How to Start a Pub Business
The following are ways by which you can start a pub business:
#1. Plan Your Business
Make a plan for your pub’s business, entrepreneurial success requires a very good plan.
This includes researching the competition and the surrounding area. You’ll explain how you plan to make money with your pub in the pub business plan template. Create a blueprint for your company’s structure and vision. It will also assist you in mapping out the details of your company and uncovering some unknowns.
#2. Financial Plan
If necessary, seek finance for your pub business. If you don’t have enough money in your savings account to cover everything, you’ll need to look for outside help. This could be in the form of fundraising or a commercial loan. Show your pub business plan to potential investors or lenders to acquire the funds you require.
#3. Define Your Brand
Your business brand is both what it stands for and how the general public perceives it. A strong brand will set your pub business apart from the competition. Advertise your new pub business thoroughly. You’ll need to work hard to market your new pub once it’s open. This could include handing out fliers or airing commercials on the radio and television. Cross-promotions with non-competing businesses could also be beneficial. You must spread the word about your company to customers.
#4. Location
A pub location can be rented or purchased. One of the most crucial elements to consider when opening a pub is the location. You’ll need to select a site with a lot of foot traffic and close proximity to neighbourhoods with lively nightlife.
#5. Open a Business Bank Account & Credit Card
Personal asset protection requires the use of distinct business banking and credit accounts.
Your personal assets (your home, car, and other valuables) are at risk when your personal and business accounts are intermingled. This is known as piercing your business veil in business law.
Learning how to build business credit can also help you secure credit cards and other financing in your company’s name (rather than your own), lower interest rates, and increase credit lines.
#6. Form a Legal Entity
Create a legal business corporation to protect yourself from personal liability in the event that one of your customers files a lawsuit against you. To form a corporation or a limited liability business, you must file articles of incorporation or articles of organization with your state.
Forming a legal business entity such as an LLC or corporation protects you if your pub is been sued.
#7. Get business insurance
Get your pub covered with insurance. Failure to get required permissions and licenses can result in significant fines or possibly the closure of your pub business.
There are several insurance policies designed for various sorts of organizations with various risks. If you’re not sure what kinds of dangers your company might face, start with General Liability Insurance. This is the most frequent type of coverage required by small businesses, so it’s a perfect way to start.
#8. Obtain Necessary Permits and Licenses
For your pub, obtain the essential liquor license and health department permission. You’ll need the required approvals from your local government before you can serve any alcohol.
Insurance, like licenses and permits, is required for your business to operate safely and legally. In the case of a covered loss, business insurance protects your pub business’s financial well-being.
What is a Pub Business Plan?
Businesses in the hospitality industry, whether it’s country pubs or city-centre wine bars, are often looking for fresh marketing methods to help them grow. Following the enormous challenges of recent years, it’s more crucial than ever to develop new ways to boost foot traffic and ensure repeat business in this highly competitive industry.
A pub business plan is a guide to the founders and key employees focused on their abilities and knowledge. An action plan laying out how you’ll turn your pub from a concept to a thriving business.
Imagine the people who will be reading your pub business plan to begin. It will almost certainly be potential business partners, investors, and lenders. These parties are looking for proof that a company is worth their time and money, and it is your business plan’s responsibility to provide that proof. It will be reviewed by you in the future when you assess your pub’s current success and plan your next actions. You’re ready to begin writing with all of these people’s interests in mind.
You’ve got the drive and the vision; now it’s time to create a business plan.
The Main Objectives of a Pub Business Plan
The following are the objectives of writing a pub business plan:
1. To Find Investors
To get all of the funds you’ll need to open your pub, you’ll have to persuade lenders to fund a portion of it. This is no simple feat in an uncertain economic context.
They use your pub business plan to demonstrate the pub’s viability as well as your own credibility as an entrepreneur. Investors will evaluate whether their own beliefs and objectives coincide with those of your enterprise after reading the business plan for a bar, and therefore whether they’re willing to supply financial support.
#2. To See the Big Picture of Your Business
A pub business plan is written for more than just potential investors. It is, above all, addressed to you. By setting up the strategy, you’re obligated to fully comprehend each part of your project in as realistic a manner as possible.
10 Steps to a Great Pub Business Plan
Spend as much time as possible reading through some examples of pub business plan templates before you begin drafting your business plan for your pub. Not only will this give you a solid notion of what you’re going for, but it will also show you the various sections and terminology that different entrepreneurs use to write about themselves and their future ambitions.
#1. Executive Summary
The executive summary summarizes your pub business plan’s major ideas. Before determining whether or not to read more, investors and lenders look at the first page of the executive summary. Therefore, write out the most important elements right away. Simply and briefly describe your pub. The executive summary focuses on the value proposition, also known as the unique selling point, which is an extended slogan directed at customers, investors, and employees. We advise you to consult a professional to help you with giving your pub business plan a fantastic executive summary that will attract your investor or lender.
#2. Company Overview
The firm description provides a more detailed insight into your pub. It gives a broader picture of everything your reader needs to know, including your concept, location, and target market. After reading, you should know who, what, and where you are, and also why you’re doing it. Emphasize the special skills you mentioned in the executive summary. If you have a signature drink or an established business model, mention it here.
Within your pub business plan, your company overview contains three elements:
- Mission statement
- History
- Objectives
These elements provide insight into the overall perspective of your business plan, allowing investors to understand the purpose of your organization and thus the objectives.
#3. Market analysis
The next stage is to define your ideal potential customer as well as the size of your market, both present and potential. The market analysis examines your market and how your pub business can compete. The market refers to the specific niche into which your pub fits, rather than the entire pub.
Put your knowledge of the economy, industry, target market, and associated trends and developments into this section. This is also where you would add competition research, such as success factors and how you will position and value your product in comparison to competitors.
You’ll demonstrate competence and build confidence by being specific. It can be a red flag for investors if your target market is too large.
#4. Customer Analysis
Because many purchasing decisions are based on emotion and identity, it’s critical to name drinks and write descriptions that cater to your target customer’s preferences. Take the time to think about how the language and topics you employ will affect them.
You need to make some findings about your targeted customer. Here are some questions you can use during your research:
- What factors influence your target customers’ purchasing decisions?
- Do people shop for the best price, the best quality, the best service, or something else?
- How will your bar cater to the distinct demands of those customers?
#5. Describe Your Product or Service
Detail your offerings and any market differentiators, such as trademarks or patents, in the product or service section. Explain how your product or service benefits your customers, especially in comparison to competitors’ offerings. What you have on your menu attracts customers (and investors). From chips, beers, and drinks to mixers, garnishes, and other add-ons, list everything on your menu with descriptions and photographs.
Because many buying choices are driven by emotion and identity, it’s critical to name drinks and write descriptions that cater to your target audience’s preferences. Take the time to think about how the language and topics you employ will affect them.
#6. Describing Your Organization and Management
Describe your legal form (sole proprietorship, partnership, or corporation) and introduce yourself and your management team or advisors, if applicable, in this section. Your business is only as good as the people that manage it. Describe your team members and explain why they are qualified to either convert your business ideas into success or help it expand. This section of your pub business plan should highlight your team’s skills and qualifications throughout.
#7. Explain Your Funding Request
This section is where you’ll outline your financial requirements and the anticipated use of the money over the next five years if you’re using your pub business plan to ask for assistance. You should outline your financial request plan in the financial request area. Are you self-funding or seeking finance for your pub? Are you considering a small business loan, and if so, for how long?
The financial plan should also include the amount of revenue required to break even. Create a financial analysis that covers your profit and loss account, cash flow requirements, and balance sheet management.
#8. Technology and Taking Payments
Another aspect of your pub business plan to think about is the technology you’ll need to keep things running properly. You’ll almost certainly require software to manage your inventory and workforce, as well as simple hardware to accept consumer transactions.
#9. Develop a Marketing and Sales Strategy
Your pub marketing strategy or plan can spell the difference between selling so much that your pub business expands rapidly or obtaining no business at all. It is also a section that lays out your entire approach for attracting, maintaining, and acquiring customers.
Promotion of your pub business will be your primary focus in the bar industry. Customers will be enticed to spend money with you through the promotions you do. Customer retention, or how you persuade customers to return, is another crucial aspect of marketing. Growth strategies are a critical part of your pub business plan.
Here are some other marketing strategies you can use:
- Pricing Strategy
Without an awareness of how your pricing affects your profitability, it’s nearly impossible to open and manage a successful pub. When tracking how much you’re making back from what you’re buying in, the outflow cost is crucial.
- Marketing programs
Regulars will need incentives to return once your bar is open, and new customers will need to be enticed to try it out. You can do this through a variety of marketing channels, including email, social media, public relations, and sponsored advertisements. Many pubs provide things like guest bartending nights, happy hours, live music, and karaoke to keep business flowing.
- Social Media Strategy
Whether you like it or not, social media is a highly effective marketing tool for the pub business. Every pub should have a presence on social media. Social media allows you to engage directly with customers and establish your pub’s brand while also assisting them in finding basic information such as your opening hours and location.
#10. Appendix
Lastly, put together a well-organized appendix with whatever readers will need to enhance the details in your pub business plan.
The appendix is being used to give further information and any other important or required documents.
FINAL THOUGHT
If you’re looking to develop a more modern business plan, we recommend you try Business Yield Consult. We are here as guidance to help you create the perfect pub business plan. On the other hand, you can also purchase an already-made pub business plan template at a cost-effective rate to save yourself the stress of writing one from scratch.
FAQs
Is it profitable to open a pub?
Yes, it is possible to make a profit by opening a bar. A successful bar’s average net profit is higher than the stock market’s average annual return.
Is opening a bar a good idea?
Being the owner and operator of a pub may be quite gratifying. Not only will you be able to give your customers a location to gather and enjoy their time, but you’ll also be able to make a lot of money. In the liquor industry, there is a significant markup.
Is it hard to run a bar?
The issue is that it isn’t that straightforward. It’s difficult to open a bar, and it’s even more difficult to run a successful bar. A frightening number of people believe that just because a bar is properly stocked and the doors are open, it will produce tremendous profits if you can scrape together the cash to go in.
