New to the Business World

[Laozi]

Hello Everyone,

I would love some help/criticism on my business idea/plan. First off let me introduce myself; my name is Bryce, I'm 28 and married. No kids for the foreseeable future due to my wives PCOS. (I say this because the more info you have about me the better your criticism will be) I currently work in the IT field and want to transition to a business owner as this has been a dream of mine for a while now. I want to open in the next 10 or so years. I have no money for a down payment at this time so any advice on people that would finance something like this would be fantastic. I love working with numbers and have came up with a spreadsheet to pretty much forecast/keep track of month - month earnings. (I'll attach it if I'm allowed to).

I want to open a bar/hang out for young people. I plan to have open mic nights (I have a few buddies that can host), local band shows (little gigs to draw people in) and Superbowl showings on a huge projector screen.

By my estimates I'll need about $360,000 to open the doors IF I start from scratch. If I find a place to buy that is a whole other beast to tackle. (why are they selling, do they meet code, what will I have to renovate) I've factored everything I can think of into this spreadsheet I mentioned before so please tell me if I missed something or did a calculation wrong. And I know that they are just predictions and not real figures but it helps me get an idea of what I need to earn per month/year.

I don't have a business plan and would need some guidance on how to make one. I've found a few articles online but I would love to see someones to get an example of what it should look like.

[Fulcrum]

Look up posts from Harold Mansfield. He's been in that industry and has written about starting up and running.

[vangogh]

Welcome to the forum Bryce.

You can find sample business plans here (http://www.bplans.com/sample_business_plans.php). If you scroll down a bit, there's a category for Bar and Nightclub that has some sample plans. I used the plans at this site as a guide when I first started and I know a few other people here have too.

I'll echo what Brad said about Harold. He knows a lot about the industry and I'm sure he'll have helpful information for you once he sees this thread.

[cbscreative]

This isn't your welcome thread but being your first post, welcome. I third the advice on Harold and your finding this place will be very helpful as you interact with Harold here. Also, congrats on your business aspirations. Once you have those, you won't easily shake them. Pursue those dreams and don't give up. If you do get knocked down, and I hope that doesn't happen but it's not unusual so just get back up.

[Paul]

Harold is definitely the man to talk to. In the mean time I have a few thoughts. I am not a "bar" expert but do have some experience in the hospitality/restaurant world. Harold may agree with me that running a bar isn't always as fun as it looks. there is plenty of work, administration,marketing and organizational skills required. Since you mention you are in IT I recommend you get some experience in the bar/hospitality business (unless you already have it). It is a "hands on" full time deal.

You may want to catch some reruns of the TV show "Bar Rescue" with John Taffer. Although contrived for entertainment value you will see many of the problems you can face in a bar business.

As for a business plan, don't become too obsessed or dependent on a written plan. It's not necessarily the first step and can actually distract from some of the more important elements such as learning the business first. A better first step might be some competitive and demographic research. No matter the written business plan it will come down first to location.

I have written many business plans so it is unusual for me to dissuade someone from writing one. You will need one but perhaps not yet.

Many may disagree with me on this but it is just my opinion. Like everyone else has said HAROLD is the guy for this ! I think he can enlighten you on all aspects of the business including many you may not have considered.

[Harold Mansfield]

I'll start with what was already said, running a bar is not as much fun as it looks. It's actually not fun. It's business and being an owner takes experience. I've worked with and for new bar owners many times over the years, in 3 different states, and the only ones who made it..regardless of how much money they had, were the ones who had experience in the business as either a well traveled bartender, bar manager or General Manager.

It is not the kind of business that you can learn as you go. You will lose your shirt and lose it quickly.

Since this is a 10 year plan my advice would be to get a job in a bar. Preferably make it up to bartender or some kind of manager.
As for "friends you can trust", that's just part of it. The bigger issue is do they know how to do the job? What skills in this industry do they bring to the table?

If you're thinking that running a bar would be a fun place to hang out with friends, it is not. Yes, when things are going well it can be fun. But above anything it's a LOT of work, and very expensive to start up and keep going. It's also very easy for it to get away from you and start bleeding money and not be able to stop it.

All that doom and gloom aside. I was in the bar/customer service business for the better part of 20 years, and I would definitely open my own bar if the right opportunity presented itself and I could do it without incurring much debt. I would never borrow $300k to open a bar. It's too risky and odds are against you 100%. That's also probably not enough money.

Also, my friends are the last consideration. Friends will break you. You'll want to hire experienced people who know how to run a bar.

[Laozi]

Thank you all for your input, it means a lot. I fully understand that it's NOT going to be fun and A LOT of hard work. That's something I'm not scared of, I was a marine for six years before getting out and landing a job in IT. Harold, I've had the thought of not having a friend as a co-owner in my head from the start, but like I've said this won't happen for a while so I'm not to concerned at this point. I would totally get a job as a bartender and work my way up if I didn't have a coosh job where I'm at now and have my wife to think of (the only way I'd leave willingly is to do this). But I'll read and research, read more, ask questions and research my heart out till that time. As for as the $300k I established that with the sq footage times cost per sq foot($120).

Paul, I'll lookup the show you mentioned. And I like being organized so having a well writes plan that I can read and reread will allow me to stay on track and keep track of issues that pop up. My wife is even more meticulous then I am and will be able to keep track of inventory and records of everything that happens. I have all the time in the world to plan and get information on this subject.