Opening a Bar or Pub Business

At some point in your life, it’s likely that you’ll come across someone who’s interested in opening a Bar or Pub business. Drinkers, clubbers and nightlife patrons often have the misconception that owning such establishments will be fun and profitable.

It usually starts with a few friends having a great time at their local watering hole on a packed Saturday night, where they will observe the good and bad points of the establishment and debate as to why there are so many customers despite the flaws they’ve noted.

The conversation invariably ends up with the conclusion that they can do it better. After all, they are presently customers, so they should know what customers want, right? In addition, each of them will bring individual skills to the team as there’s an accountant, a marketer, a lawyer, a businessman and an engineer in the group (for example). On top of their skillsets, each also has a great network of business and social contacts to tap on. No experience in the business? No problem – they’ll hire Managers who’ll solve all those problems. After a few more drinks, the business plan continues to write itself for this seemingly unfailable venture.

Once the hangover has worn off, each of the budding entrepreneurs may try to get a second opinion when the point of no return comes for them to cough up their hard earned money for the new startup. They will ask family, friends and colleagues for views but most of the time, they’ll be unable to get the necessary insight as none of the advisors have any experience in owning and operating a Pub or a similar F&B establishment. Without clear reasons on why not to proceed, the group of friends go ahead with their master plan.

A lot of these startups will fail as the same mistakes are repeatedly made by a steady stream of new entrepreneurs venturing into the business because of their apparent passion for drinking and nightlife.

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