Startacus Join Now! /

How to start a Pub - Part 2

Startacus RSS

by Startacus Admin



Finance

No matter what way you look at it, opening your own pub will be expensive, just how expensive depends on a number of factors; its size, the location, the buildings general condition and whether you elect to go for a leasehold or a free pub.  For some general information on how much getting started is likely to cost, take a look at last weeks ‘how to start a pub post’.  Here’s a few other things that you might like to have a think about.

  • Do you have a solid idea of how much it is going to cost you to open your pub or bar? It is important that you are realistic with this figure and running a pubmake sure that you have a significant contingency fund to help with any unexpected costs.

  • Loan providers will generally be willing to loan 70-80 % of the amount that you need to purchase your free house, but in most cases this will still leave you with a large deficit to make up.

  • You may be able to loan a certain amount of money from established businesses in the industry such as a large brewery, however these loans often come with numerous strings attached so be sure to check the fine print.

  • Do you have the money available to open the pub/bar?

  • In the case that you have contractual obligations associated with a leasehold, make sure that you fully understand the financial implications of these.

  • Will you need to make any alterations/renovations to the building?  Do you know how much these are going to cost?

  • Do you know what the local authority business tax rates are in your area?  Do you know how much you will have to pay?

  • What are your overheads going to be? It is a good idea to work out what these will be on a monthly basis taking into consideration everything which you need to pay including;  tax, staff salaries, purchasing stock, rent, electricity and so forth.

  • Do you know how much money you need to bring in each month in order to break even / make a profit?

  • Do you plan on looking after the business finances yourself or will you require the help of an accountant?

  • There will be quite a few insurance costs to consider, make sure that you incorporate these into your plan.

Business practicals

We have already covered some of the more specific practicals involved in the running of a pub/bar (such as licensing) in last week’s post, but here are a few more things that you need to be thinking about;  

  • If you plan to serve food on the premises have you obtained a licence from your local authority and have you registered with the food standards agency?

  • Do you have a sound knowledge and understanding of food hygiene and safety regulations? If not, it may be a good idea to take a quick course to re-familiarise yourself.

  • If your pub/bar is an entirely new business have you registered it with HMRC and have you registered as an employer?

  • Are you aware of employment legislation and what you need to do in order to employ staff?

  • It’s a very good idea to have a clear policy with regards to equal opportunities, you may wish to have a nosy at some other companies literature to help you.

  • Are you completely up to date with the rules and regulations of the sale of alcohol?

  • Do you understand that as a publican you will have certain responsibilities to your customers, neighbours and local community?

To be perfectly honest each of these sections could go on and on but we hope this little guide will give you an idea of the things you need to think about before opening a pub or bar.  For some more specific details of the things you need to know take a look at last week’s introduction to the basics of opening your own bar.

If you like what you see here on Startacus, why not become a member of our growing community? It's free! And you'll get all this - exclusive access to our Business Toolkit, discounts and offers galore for your business via our member only business deals, the chance to network and connect with loads of fellow self-starters, and maybe even become our celebrated 'Self-Starter of the Week' and tell the world your startup tale! Join right here for free...

Go to Page:


Subscribe to our newsletter

If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
Startacus RSS
Business DealsSubmit Your Startup
Win TicketsNetwork and Collaborate
Our Latest Features



Published on: 24th May 2014

If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.


Create an Idea!View Other Ideas, Projects or Startups
Why not Sign Up?
Create Projects
Edit Projects
Self Interviews
Self Starter of the Year
Product Giveaways
Subscribe to our Newsletter
Startacus
Check us out at our Google+ page!