my parents have been in the bar industry as owners in MA since early 90's. Not familiar with OK however, I know around here in good ole TAX-achussetts the BIG issues are:
1. obtaining a lquor license. They come in: Beer/wine only, Beer only and full liquor. Out here, again im not sure with OK but in MA liquor licneses are issued to towns based on how many permanents residents reside there, and in most places towns have already filled their quota, so in order to obtain one you have 2 options. Both option require approval from the town, ie; town meetings. First is apply for one through your town, there is a fee that goes along with that. Next is buy it from an existing bar. This gets REALLY EXPENSIVE. In MA liquor licenses can act as seperate business entities, meaning, if I own a bar with a full liquor license I can sell my bar and license in 2 seperate sales. Most of the times the bar thats sold is just the building and equipment inside, not including the license. The license is then sold seperatly at about the same cost as the building. In MA the last licnese sold for over $300,000. Thats the main reason you see bar selling for $700,000 and up. VERY EXPENSIVE. There are businesses that buy up liquor licneses and you can in essance lease it through them by making monthly installments, if you dont have enough start up to purchase it out right, Keep in mind there is a fee every year to keep the license and you have to register every year by I think end of Nov.
2. Next is allowing yourself with enough liability insurance. Liability insurance is HUGE when operating a bar, because remember, everyone served or anyone who even walks into your establishment is now a liability for you.They drive drunk and hit somone thats a night mare for you.
3.INTERNAL THEIFT. Very big, every employee you have is tempted at one point to "hook their buddies up" with free drinks, half price drinks, etc. If you do not plan on being in the bar physically 90% of the time, espically during peak hours, you must have video cameras, espically behind the bar to watch for double pouring.
4.Star up capital. The number one reason 50% of all business fail in the first year, not enough capital to stay afloat. There is a lot of start up capital involved espically in stocking your bar ( more on that in a min ), you have to allow yourself to stay afloat.
5.You can contact beer distributors and discuss specifics of delivery procedures and whatnot, but they will not set up and account iwth you until you have a license! Accounts are on whats called a revolving pay cycle, ( or some form of that terminology ) which means pretty much your inventory bills rollover each month so you usually dont have to pay a complete first month bill to get started there is a down payment needed and credit check ( atelast thats what i was told ). For pricing you can go to budweiser.com and im pretty sure theres a link.
6.Dont waste money on pointless things!! Such as cool neon lights and bar signs, the beer reps come out and provide those things. Spend money wisely.
7.Decide what type of bar you want and who you are attracting.If you want live music there is an entertainment license you will need to get, again theres a fee through your town ( all licensing inquires, your better off starting with your town clerk ) same goes with the lottery as well.
8.Again like any business if you have no experience in that industry you will most likely fail, bartending experince and/or management experience is HUGE
9.Pool tables and arcade type machines, you should be able to find someone who you can set up a deal with for them to provide the tables and you split the profits, cant remember the technical name for that.
Anyways, hopes this helps, theres a lot of research you need to do, does your location need another bar, is that area zone for a bar, is traffic a concern, how many hours do you plan being there ( a lot ), do you plan on being hands on, whose going to keep track of records and recipts, will you hire a manger to over see things, adequate parking, are your finances in check, how much capital do you have, can you finance, etc.
BEST OF LUCK, and I look forward to having a few beers! lol....
CHHERS!
|
Toll Free Orders:
1 (866) 291-5756
Linear Mode
