To create your bar, or even take over one, you have to arm yourself with a business plan if you want to obtain funds to launch your activity. Investors have particular expectations with essential parts to discuss. What are the golden rules for writing a good business plan for a bar? How to do it? This practical sheet aims to enlighten you on the steps to follow to write a quality document in funders’ eyes.
A business plan will make you able to carry out your bar creation by studying all the parameters. It helps you to operate the industry best and minimize the risks. Let’s enlighten the steps to create a business plan for a bar.
Describe the theme of your bar and business structure (partnership or sole proprietorship). Also, add the value proposition (product, service, atmosphere, or all of the above). In a nutshell, there’re thousands of restaurants, highlight what is unique in your bar business.
Moreover, illustrate the current and future outlook of your industry. Your business plan should explain how your bar will benefit from positive aspects while staying safe from the negative one. Include a sample menu and the type of service your restaurant will offer. Maybe you provide counter services or serve food with the help of your staff. Whatever your service and menu plans explain it clearly in your business plan.
Similar models in business plans
Now we have to get to the heart of the matter. Afraid of the blank sheet? The first step, take inspiration from pre-established bar business plan models. They are a significant source in the development of it. In your business plan, add Market research, competitive analysis, business model, financial forecasts, etc.
In a bar’s context, the catchment area is important, and the funders have a keen eye on the subject. Location is one of the key success factors of a bar. You must have the ideal place and justify it and argue your choice in your business plan.
Market and Competitive analysis
The next step is to do market research to analyze the industry, competitors, and customer base. The results obtained will facilitate decision-making with regard to:
- The price to apply;
- The choice of location;
- The concept;
- Possible suppliers.
You will also have to consider the economic factors and the crisis and the drop in consumption. Is this an opportunity or a threat to your business? How will you bounce back and adapt if there is a change in X months or X years? In particular, these reflections may take the form of a business plan that you have produced, taking an unfavorable economic situation (a low assumption) as a working basis.
Choose a location
It is vital to choose an excellent location to open your bar. The best is to opt for a room located in a busy street without it being too noisy for customers’ comfort. Choose a space where they can park easily, and with busy places (shops, places tourist attractions, etc.) nearby. In your business plan, describe the general area where your bar is located. Also include the neighborhood information.
No business can get success without the effort of the management team. In this section, explain your background, skills, and proficiency. Then explain the talent, skills, and expertise of other members of your management team.
There are many marketing tactics that will get you, customers, in the first few months. For example, you can distribute flyers in your neighborhood with a voucher for a free coffee. Or you can ask influencers to promote your cafe in exchange for cash or a number of free coffees.
In this section, explain how you will market your business. Which marketing strategies you’ll use to make your business thrive? Include whether you want to promote it through social media accounts or sponsoring local events, or both. May be you’re going to advertise through email newsletters, radio, or TV. Whatever your marketing plans are, write its detail in this section.
This section includes the profit and loss statement and capital tied up in equipment, real estate, and furniture. It must also show the initial cost of your business. Include an income statement forecast, a financing plan, and a cash flow forecast. For the banker, this part remains very important, so it should be as realistic and fair as possible.
At the end of your business plan, write the executive summary. In this section, restate all the information on the business plan segments briefly.
Conclusion: open your café
The steps above will help you when opening your own cafe. Start with the basics with a solid business plan and make sure you have all the paperwork (like permits and approvals) in order. Only then can you begin to work out all the details of your concept, such as your menu and marketing strategy.