What is the Average Start up Cost for a Bar
When you think about starting a bar then first question comes into the mind is what can be its cost.
Before you actually know the average cost to open a bar business, you need to think about some factors that could affect the cost.
When you are planning to open a bar, one of the first things you should consider is the expected cost. However, there are some factors that you need to think about, since starting a bar is not so easy.
Location You Choose for the Bar
Searching for the best place to setup your bar is a crucial part of establishing your business. As a matter of fact, choosing the right location will help you to know the exact cost you will use for the business. Of course, you want to open a bar where you think can have the maximum of your customers. Since you are planning to build a bar, you want to get a location that provides great visibility to the people. And that selection of the area will provide a great impact to the cost of a bar. Basically, the cost for the premises option will depend upon on the location's popularity, sizes, and the decision whether you will buy or rent the property. If you want to keep the setup cost down then prefer to rent the place rather than buying it, you should think first the right location though.
The Themes and Types of a Bar
The types and themes of a bar are also an important factor that can influence the average start up cost. The types of bar varies from brewpub and beer bar to a wine bar. For most newly established bar business, the start up cost for the brewpubs ranges from one hundred thousand dollars to one million dollars. The reason of the varying cost range is because of the material you needed to create beer on the property. In some cases, most bars cater to sports enthusiasts while some build a bar as a night club. Generally, bars will be required standard equipment like furniture and glasses.
Licenses and Permits
Generally, all businesses are required to register with state authorities, and the price of a business license will vary from state to state. The bar business should also get permits to sell beverages and other types of alcohol. For instance, in some places of New York, the business permit is called as Alcohol Beverage Control license and is attained from the liquor authority. A yearly payment will be needed in order to maintain the license.
Other Important Matters for Starting a Bar
Capital for utilities, sound materials, taxes, and staff are included in the additional cost to build a new bar. A newly-built bar business may need to order drinks, which could cost six to eight thousand dollars. When ordering beverages, you would estimate it with forty-five percent for the budget for beer, five percent for wine, forty percent to liquor, and ten percent for mixed drinks. In addition to that, the money must be budgeted for business marketing, which will bring buyers through the door of your business. The cost you spent will depend upon on the form of marketing.