{"id":39307,"date":"2024-10-15T11:14:00","date_gmt":"2024-10-15T11:14:00","guid":{"rendered":"https:\/\/swoopfunding.com\/us\/?post_type=start-a-business&p=39307"},"modified":"2025-09-18T14:37:55","modified_gmt":"2025-09-18T14:37:55","slug":"how-to-open-a-bar","status":"publish","type":"start-a-business","link":"https:\/\/swoopfunding.com\/us\/start-a-business\/how-to-open-a-bar\/","title":{"rendered":"How to open a bar"},"content":{"rendered":"\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

With sales of liquor expected to <\/span>grow every year<\/span><\/a> for the rest of this decade, opening a bar may seem like a slam dunk \u2013 and if you do your homework right it can be. However, bars and pubs are among the most regulated retail businesses in the US, with federal, state and local laws covering every aspect of the operation. Add in expensive inventory, strong competition, high licensing costs and increasingly savvy customers and it doesn\u2019t take much imagination to see that operating a bar can be challenging.<\/span><\/p>

But let\u2019s suppose your business dream is to own your own bar no matter what. How do you get there, what hurdles must you cross and most importantly, what will it cost? Let\u2019s find out. Read on to discover all you need to know about opening a bar.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tGet a quote<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t
<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

How to open a bar in 10 steps<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Opening a bar comes with the same fundamentals as opening any kind of store, you either start from scratch with a brand-new business, or you buy an existing bar with an established customer base.\u00a0<\/span><\/p>

If you choose to buy an existing bar you\u2019ll only have to modify the licenses and permits, carry out any changes to the d\u00e9cor that you wish to make and perhaps rethink the marketing strategy. However, buying an established bar won\u2019t come cheap. Depending on where the bar is located and how successful it is, you could end up spending many hundreds of thousands, or even a few million dollars to claim the bar as your own.<\/span><\/p>

Starting from scratch will be far cheaper than buying an existing bar, although you\u2019ll have to build your customer base from zero \u2013 which will take time and burn more cash for marketing. But let\u2019s assume you choose the brand new route \u2013 here\u2019s what you need to do to start a bar from scratch:<\/span><\/p>

1. Create a business plan<\/b><\/h3>

If you\u2019re seeking external investment or a commercial <\/span>business loan<\/span><\/a> to open your bar, you\u2019ll need a detailed business plan to support your pitch or application. Investors and lenders will want to know why you need their funds and what the money will do for your new bar. Business plans should do more than paint a rosy picture \u2013 explain the risks involved, what the downsides could be – and how you intend to overcome them.\u00a0<\/span><\/p>

Even if you don\u2019t need investment or a loan, a business plan can still be a very useful vital tool. Use it as your business manual, referring to the contents to guide your strategy and manage your financials.<\/span><\/p>

Find out more about creating your business plan <\/span>here.<\/span><\/a><\/p>

2. Find the right location<\/b><\/h3>

Where your bar is located can have major impact on the success of your business. Take the time to research different locations, measuring the competition and the size of the local population. You want a bar in an area where foot traffic is high and local incomes can support your business and the kind of drinks you sell. Once you have a target area, you can look for vacant units to lease.<\/span><\/p>

3. Choose a business name<\/b><\/h3>

You\u2019ll need to register your bar with local, state and federal authorities. But before you do that, you\u2019ll need a name for the business. You\u2019ll want a name that is not taken by another organization, as infringing on someone else\u2019s brand name and copyright could end up in a costly lawsuit. Check the official trademark database with the <\/span>US Patent and Trademark Office<\/span><\/a> to make sure your business name is available.<\/span><\/p>

You will also want a website and branded email addresses for your bar. Check to see if your preferred company name is also available as a domain name\u2013 such as: <\/span>www.mynewbar.com<\/span><\/i><\/a>. You can do this at the global domain name database \u2013 <\/span>WhatsmyDNS.net<\/span><\/a>. If your domain name is available, you should be able to buy it via any of the advertised web hosting services.\u00a0<\/span><\/p>

4. Register your business<\/b><\/h3>

Once you\u2019ve settled on a name, you must decide if you want to run the business as a sole proprietorship, an LLC or a corporation. Although it involves more paperwork, operating as a corporation can protect you if the business does not succeed, as you are not personally responsible for the company\u2019s debts. If you choose this route, you must submit your articles of incorporation to the secretary of state\u2019s office in the state where you register. You can do this in-person, online, or by mail. You will have to pay a registration fee at the time of filing \u2013 typically $100.<\/span><\/p>

5. Obtain licenses and permits<\/b><\/h3>

Bars are governed by a host of laws, and you will need to get the necessary licenses and permits. Initially, you must register with the federal <\/span>Alcohol and Tobacco Tax and Trade Bureau<\/span><\/a> (TTP). They can also give you the information you need to get state and local operating licenses and permits for your location. Don\u2019t be tempted to start trading without the proper licensing as that can lead to large financial penalties or even prosecution.<\/span><\/p>

Learn more about <\/span>getting a liquor license <\/span>here<\/span><\/a>.<\/span><\/p>

6. Find suppliers<\/b><\/h3>

Keeping your customers happy is crucial for the success of your bar. This means finding reliable suppliers is essential. Start by connecting with neighboring bar owners for recommendations on trusted vendors. Create a comprehensive list of supplies needed and establish a budget to guide your purchasing decisions. Exploring online suppliers can be beneficial due to potential discounts, but exercise caution, as not all are reputable.\u00a0<\/span><\/p>

Before partnering with a supplier, inquire about their business history, ask for references, and clarify the minimum order amounts and payment terms. Additionally, ensure they have a solid quality assurance process in place. A good supplier should be adaptable and understand your specific business needs. If a vendor does not meet your expectations, don\u2019t hesitate to seek out a new supplier to ensure your bar remains well-stocked and your patrons are satisfied.<\/span><\/p>

7. Secure funding<\/b><\/h3>

If you don\u2019t have enough cash on hand to launch your new business on your own, you\u2019ll need funds from investors or lenders. Many new businesses get started using financial support from friends and family, but if that\u2019s not an option, there are networks of venture capitalists and angel investors readily available online. Bringing in external investment can give you the cash you need to get your bar off the ground but be aware that investors will usually want a piece of the action in exchange for their money. This means you will need to give up a share of your ownership and you may lose overall control of the business.\u00a0<\/span><\/p>

With a <\/span>business loan<\/span><\/a> you don\u2019t have to surrender a share of your store to get the funds. Although it\u2019s never easy for new businesses to borrow money, some lenders have special products and programs for startups and entrepreneurs. These types of financing include:<\/span><\/b><\/p>