Starting a bar requires a great deal of effort, dedication, and most importantly passion.
If you're interested in how to sell food and drinks, or selling food and drinks online, you can use this page as a guide for everything you'll need to know.
Want to learn more? You can check out our full guide on how to start a bar ➜
|Min Startup Costs||Max Startup Costs|
|Office Space Expenses||$0||$7,000|
|Employee & Freelancer Expenses||$151||$352|
|Business Formation Fees||$5,600||$20,400|
|Equipment & Supply Expenses||$66||$1,200|
|Retail Business Expenses||$1,250||$11,650|
|Food Business Expenses||$2,425||$37,400|
|Advertising & Marketing Costs||$75||$4,736|
|Training & Education Expenses||$0||$850|
|American Bar Association||americanbar.org||#25,872|
|Bar and Bench||barandbench.com||#31,350|
|The Florida Bar||floridabar.org||#53,466|
|International Bar Association||ibanet.org||#66,748|
|New York State Bar Association||nysba.org||#130,853|
|State Bar of Texas | Home TexasBar.com||texasbar.com||#130,935|
|Themis Bar Review||themisbar.com||#134,357|
Pros & Cons
|Meaningful business connections||You never know who you will meet as a bar. This could be the start of an incredible business opportunity!|
|High margins||The gross margins for your bar are typically around 70%, which is considerably high and allows you to grow your business and manage costs easily.|
|Daily physical activity||Bar's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.|
|Amazing perks and discounts||Working in the bar comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.|
|You are your own boss!||With starting a bar, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!|
|Local Community||One of the best parts of starting a bar is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.|
|Crowded Space||Competition is high when it comes to your bar, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.|
|Motivation of employees||If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.|
|High employee turnover||In the bar, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.|
|Stressful work||This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.|
|High overhead expenses||With starting a bar, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.|
|You may need to charge sales tax||If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)|
Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.
Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.
The affiliate typically gets a unique link where clicks and conversions can be tracked.
Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.
For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.
Word of mouth
Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.
Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.
According to Nielsen, 92% of people trust recommendations from friends and family.
Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.
Hey! 👋I'm Pat Walls, the founder of Starter Story.
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