ONYAD

November 30, 2018 at 4:45 am, No comments

FEEL THE PASSION

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ONYAD
30 Nov, 2018
We have a new BAR a new WEBSITE
30 Nov, 2018

PREPARATION

Every dream has a vision—getting that vision to materialize into a solid business plan and really clarifying what the concept or niche behind your bar will be, is the first step in your preparation process. This stage is where you begin to muse about what type of establishment you will be, the vibes you will exude and seek to attract, the consumers you want to be surrounded with: what does that all even mean, you ask?
The concept of fit is something that gets thrown around in all business settings today, but establishing a fit between your own passions and the actual environment that you create is incredibly important. Even more importantly, the environment you create has to tightly fit the people that will bring life to it.
Your central concept doesn’t need to be overly intricate, just an idea that you are wholly passionate about and committed to. When I asked Scott Perez, one of the founders of Walkers in Tribeca, about the initial concept for the bar he said, “In NYC most people have apartments that you can’t entertain in. This is a local place that makes customers feel like they are in their living room.” Your theme is the identity of your bar and it is the heart of how you will differentiate it from the competition.
In an ultra competitive business environment like New York City, a crucial novice mistake to avoid is trying to please everyone: you can’t be a hipster-laid back-rowdy sports bar-college hub- surf themed- Texas bar. Your best bet when defining your specialty is to, instead, identify a narrow target clientele and seek to be their ideal bar, integrating their needs with the ideas that made you want to take on this daunting task in the first place; your return customers, as is the case for most consumer-based businesses, will be the backbone of your bar’s success. You need regulars to keep you afloat and to generate buzz by telling their friends about their new favorite watering hole, especially in the early days.
Being able to really visualize what and who you want to fill your space with will help when you’re searching for a location. Once you know what the theme of your bar will be, whether that’s a friendly-neighborhood-locals-only spot or a trendy-eighteen-dollar-mixologist-made-specialty drinks spot, you’ll be able to more adeptly quantify what your floor plan and general spatial requirements are. Once you get past the initial dreaming phase and your questions start to have more specificity, it’s time to craft your business plan.
Creating a Business Plan
Summarize your concept (described above) in a few tight sentences that you can eventually use as the starting point of your pitch to investors.
What are you going to name your bar? This is the beginning of your dream becoming a household name, it’s more important than you may think. Be creative, steering clear of the generic, let it espouse your vibe, and make it catchy and memorable.
Determine how much initial capital do you need: However much initial capital you think you will need—you need about 20-40% more than that… SERIOUSLY, 20-40% more — when in doubt, round up!!!
Be sure to include the amount of initial capital that you have in personal funds and how much money you will need to raise from outside sources.
Solidify your first hires: Everything from whether or not you’ll have a manager or you’ll be managing the bar yourself, to your bouncer and security needs, to how many bartenders who plan to hire should be laid out in your initial business plan so that when you begin your search for your opening staff, you know who you’re looking to hire. Here are a few staff members that current bar owners say are absolutely essentially (and they may surprise you):
A really good bookkeeper: Your finances are going to overwhelm you. When I asked the owner of Summers, Chris Taha, for something he’d do differently he quickly responded, “Have a good bookkeeper from day one.”
“An accountant with a backbone who will make you do what you need to do—like pay your taxes.”- Scott Perez, Walkers
A liquor lawyer to negotiate the liquor license
A lawyer who will first help you negotiate the terms of your lease and who will then serve to handle your legal needs (you are opening a bar)
A plumber you can count on, consistently, all the time (again, you are opening a bar)
If you’re choosing to hire a manager, they will be your eyes and ears, choose wisely
Outline where will you look for your opening staff: Other than word of mouth and pulling from the neighborhood (especially for bartenders, look for locals who have worked at other bars in the area), this is a hard place for us to make recommendations. Craigslist and other jobs board have everything to offer from perfect fits to absolutely unhireable and it will take some sifting through the mess to find what you’re looking for. Regardless, this is a crucial but tricky step so start to think about it early.
Nail down what type of space you’ll need to bring your vision to life: How big of a space do you require in terms of square footage? (i.e. How many people do you want to have in your bar when it’s at capacity?) Do you need a full kitchen? Equipment requirements?
Consider your food and beverage program: What will you serve and how much will it cost? What’s your pricing strategy: industry-focused or customer-focused? Who will be your suppliers/distributors?
When calculating the total cost of a drink, think beyond the liquor and mixers to the cost of garnishes and napkins; your total cost should be no more than 20% of the price you charge.
Outline your financial strategy:
When do you expect to be in the black? [Goal: 6 months – 1 year]
When do you expect to break even? [Goal: 3-5 years]
What is your exit strategy if things go wrong?
How will you keep track of your financial goals and checkpoints?
How much should you be saving? [Put away about 2-4% of your weekly operating costs for emergencies, invest the rest back into improving your profitability]
Miscellaneous:
Choose a POS System, Inventory System, Payroll System, and create on overall training and operating manual (more on this later).
How much can you spend on rent? How much, roughly, will initial renovations cost?