The nightlife industry, including bars or taverns, experiences billions of dollars in revenues in the United States every year.
It makes sense that anyone wanting to open a business would be considering opening a bar. With that thought, however, you must be wondering how much it must cost to open a bar.
What kind of cash do you need for this type of idea? How much does it cost to open a bar? What goes into the startup and operations? The answers to these questions are below, so keep reading to find out what you need to know.
How Much Money Do You Need to Open a Bar?
As you may have guessed, the cost to open a bar is going to vary based on a number of things. Not all bars are the same and, as a result, they don't cost the same to create or operate.
Buying and owning a bar in a small town is not going to be the same as buying and owning a bar in a large city. In addition to that, the scale of your operation will dramatically influence the price.
Startup costs can be expensive, but you must also consider costs outside of the initial need, including operating costs and even overhead.
Startup Costs
The first major expense for any person that wants to open a bar is the startup costs.
The costs that you'll initially have will depend on several factors, including location, building cost, utility need, and size.
You'll also have to consider any licenses you need, as well as permits and insurance.
Some simple things, such as buying bar stools, investing in hand soap, or even decorations around the bar's interior, will need to be considered also at the beginning.
Remember that you must register your bar within the state to make sure you have a legal operation as well. The licenses to operate a bar will cost money and depending on your state, you will need to complete a specific application process.
Operating Costs
Once you have your bar up and running, you'll still have to pay to operate the bar. A big reason that a business may fail is that they use all of the money on startup and don't consider the long-term costs.
You need to remember that a profit is not going to happen right away. In fact, it can take several months for a profit to turn with any business.
Monthly operating costs for a bar will include staff fees, rent payments, and inventory. You may have other pub costs as well depending on your specific operation, so it is imperative that you plan ahead of time.
How Much Does It Cost to Open a Bar? It Depends!
Now that you've got a little more insight into the question 'how much does it cost to open a bar?' and know what you're getting into, you may be more ready than ever to take the next step.
Once you've got your finances in order, speaking with a financial expert can be a great way to determine how you can maximize your bar ownership budget.
For more money and finance information, or even small business tips, check out the rest of our website. We offer a lot of details about how to become a successful entrepreneur, including more articles about pub, club, and restaurant ownership.
