How To Open A Bar/Restaurant if you have No Money
People that want to own a bar or restaurant without putting money down on it will find that it IS possible to do. Investors, Loans or even crowdfunding are a few of the creative ways to open a bar or restaurant with no money but there are several other ideas that you can also do it with. You will want to do a lot of research on the matter before you decide to do something like this as it is a costly endeavor.
What Do People Do When They Want To Purchase A Bar/Restaurant With No Money?
There are many ways for people to open a bar without money at the beginning of their business endeavor. As they grow and establish a following for their business, they will have money to invest in it themselves too. Since they will want to look into the various ways in more depth before they make a decision on how to get money in the first place, they do not want to rush into anything right off the bat. They will want to research all the different possibilities that are available to them to see what will work out for them in the best way. Here are some ways that people open bars without money to set it up and operate it at first:
- Investors – The most popular way to open a bar with no money is to pitch the idea to investors that will back the owner with the money that is necessary to open the bar. Finding the investors will take time and a person needs to have a good idea in mind when they are approaching them. Investors can be instrumental in starting people out and they have experience in the matters. Since investors are usually interested in opportunities that they think will work, they are always willing to hear pitches from new bar owners.
- Loans – A person can apply for regular loans, small business loans, peer to peer funding, and more. Some small business lenders will loan money for a startup business like this. Once they are applying for help in this way, they want to make sure that the paperwork is correct. In some cases, legal assistance will be needed to make sure that everything is handled properly. A person will want to make sure that they are following all of the rules and regulations when they are applying for loans to help them to open up a bar.
- Restaurant Incubators – There are restaurant incubators that are available in various cities. A person will want to do their research on this way to open a bar without money. These incubators assist the owner in all types of ways. There are ones available in Pittsburgh, PA, Baltimore, MD, Dorchester, MA, and San Francisco, CA.
- Crowdfunding – Crowdfunding is another way that people are able to open bars without any money. They use services like GoFundMe, FoodStart, Kickstarter, and AngelList. Field and Vine in MA used Kickstarter to start out and Swah-Rey also used Kickstarter in FL to open their bar.
- Food Trucks And Pop-Up Restaurants – Metzy’s Taqueria in MA used a food truck at first until they could save enough for opening a bar. The pop-up-restaurants offer a temporary way to begin business before finding a permanent location.
- Catering – Catering services work great for people that want to eventually open a bar. They develop quite a clientele over the years that quickly follow them when they find a bar. There are many contacts that they make over the years that can help them in a variety of ways when they want to obtain funding for opening their own bar.
- National Restaurant Association – Some bar owners have started out without money by contacting their chapter of the local National Restaurant Association. They are able to enlist their help when they are first starting out in the beginning.
How Much Does It Cost To Normally Open A Bar or Restaurant With No Money?
An average bar costs between $175,000 and $850,000. This price includes the costs of a location and the mortgage that a person will have to take on when they want to own a bar. Sometimes, a person will find an already established bar that they can take over for as low as $25,000. They will need to do a lot of research on the subject and these costs do not include all of the other expenses that go into operating a bar.
Purchasing A Bar or Restaurant With Investors
For those potential bar owners that want to accomplish this without putting money on it, they use investors to fund their dream. These investors are people that have money that want to get in on a business endeavor while someone else takes the necessary steps to set it up and run it. These investors are instrumental in helping many bar owners open a bar that they can call their own.
Solid Plans For The Future To Impress Investors
For people that want to open a bar with no money down, they will want to make sure that they have a solid plan in place. This will take some time and research on their part. Details are extremely important and all of the information needs to be kept track of in a logical way. They will need to do the following in order to make sure that it goes the way that they wish it to when they are planning to open a bar:
- Unique Idea – It’s important that a person have a unique idea for their bar. Since they will have an idea of the customers that they would like to attract, their idea needs to be put down on paper. They will also want to be able to describe their bar vocally. Communications is necessary when they are trying to formulate plans to garner the attention of the investors. Since people will need to be persuaded to invest in the bar, they should know exactly what they want to say and say be able to say it well.
- Strategy – Developing a strategy is necessary. They need to know what they are going to do and at what times they will be doing them. An investor needs to be able to see the timeline that will be followed so that they know that their money will be used in the best way possible. A strategy should be implemented as soon as possible and at the highest levels of perfection.
- Business Plan – Having a business plan is imperative. This is difficult to do on one’s own so a person would likely hire a specialist to assist them in this way. It needs to be done well so that an investor can read through it easily to find out its worth. Taking the time to do the business plan right will be a benefit for them in the long run.
- Location – Picking a location is an important part of owning a bar. It needs to be in an area that will gain attention and be easily accessible. Parking needs will also be of concern. Making sure the location is a good one will take the time and effort that is necessary in order to procure it. Most bar owners know where they want to have their business because it is a place that they know well and have quite a bit of friends in a particular area.
- Investors – A person will need to approach the investors. Since there will be more than one, they will have to find out a way to get them all together at one time or schedule them at various times. In modern days, video chatting can be used for this purpose. Having all of the investors on the same page is necessary so that the person can purchase a bar and begin to take the proper steps in opening it.
Opening The Bar/Restaurant
When a person has the funding in place, they will have to have an idea of how to start it up too. There are kinds of incidentals that they need to take into consideration. They should obtain legal representation for any of the paperwork that they have to fill out to make sure that everything is legal. Here is a list of what a person will need to do:
- Design – The design of the bar/Restaurant is important. These are all the details of the interior and exterior of the establishment. They will need to be thought out well and put forth in a timely fashion. In many cases, an interior designer is hired in order to be sure that this part of the process is handled correctly. This way, a bar owner can concentrate on a variety of other issues that they need to attend to also.
- Stock – Having the bar or kitchen stocked is necessary for it to run properly. Having all of the liquors, beers, wines, and more on hand will allow the business to run smoothly. It’s also important to have all the plates, dishes, cups, glasses, and other items that will be used in the daily business of the bar.
- Open – Planning on an opening day is something that a bar and restaurant owner will look forward to. Everything needs to be in top shape for the moment that the doors are open to the public. Since this takes a long time, they will want to check for all the little details that will need to be approved prior to opening. Keeping track of all of this may be difficult so it may be necessary for them to have the proper type of software that can assist them as they are completing all of the things that they need to do and checking them off as they are performed.
- Team – Choosing great team members to assist with the operations is also a big job. They will need to hire bartenders, waitresses, cooks, cleaners, and more. All of these workers need to be screened, interviewed, and trained so that they will be able to do the work for which they are hired to do. The bar owner will want to make sure that all of their staff are able to work as a team so that they can all accomplish their duties and make money too.
- Promote – Promoting is essential. Without the proper publicity, the bar/restaurant will not do much business. Advertising and promotion is something that will need to be done in a very good way so that the bar will receive the business that it needs. With the help of online advertising, a bar owner will be able to let people know what they are offering, when, and where they need to go to enjoy the new bar.
- Run – Running the business on a daily basis requires a lot of work. The business owner may need to hire some people to manage it for them. These people need to have a lot of experience and be trustworthy. Since most owners will want to screen these people over time, they will most likely run the business themselves in the beginning until they find the right people to do it for them.
Hiring Legal Help
For people that are opening a bar for the first time, they will have to fill out a lot of paperwork and apply for licensing. Since these are all complicated matters, it’s best that they have legal counsel available to them. If they are in need of this type of assistance that is offered at no cost, they will need to apply for it. Many people have found that these services are a huge benefit to them so that they can plan according to the laws that govern the operation and ownership of bars.
After careful consideration, planning, obtaining the funding, it’s time for a prospective bar owner to make their dreams a reality. They need to be confident that they can do it and begin immediately so that they will have the bar that they want in as short of a time as possible.