Many people dream their whole lives about opening a bar or tavern. You may have always thought of how exciting and profitable it could be to run your own hospitality and entertainment business. However, it’s important to keep in mind that — as with any venture — there are risks you must consider before moving forward with your plan.
For many people, the bar business is a process of give and take. Successful operations can see favorable profit margins, and also experience excellent networking opportunities — both professional and personal. Then there’s the pleasure of being your own boss.
On the other hand, competition in this space can be fierce. You may also encounter unsafe or risky scenarios. Read on to discover major considerations to mull before you purchase a bar business, and how insurance for bars and taverns can help safeguard your company, employees, and customers.
1) Have a Long Term Plan
It might sound odd, but the very first thing you should do before opening a bar business is to ask yourself if you’re the type of person who would be happy running a bar. While this venture can be fun and exciting, working hours can be long, and there are many responsibilities to shoulder. Even if you plan to hire outside staff to manage day-to-day operations, you’ll still be responsible for things like payroll, employee relations, purchasing, and more.
You’ll also need to secure comprehensive insurance. This protects your bar, and also your team members and patrons. A reliable agent can also help you explore other essential provisions, including fire protection insurance and similar.
2) Be Vigilant About Condition
Much like you’d inspect a vehicle, home, or apartment before purchasing, it’s important to take a close look at the condition of the establishment you plan to buy. Once the sale is complete, any pitfalls or repairs will be your responsibility. If necessary upgrades are extensive, it could turn into a costly endeavor. That includes deteriorating infrastructure, building access, and details of the lease agreement.
You should also consider the type of bar or tavern you’ll open, and other factors such as location, target market, marketing, financial considerations, and more. If you plan to sell food, you should look into details surrounding restaurant insurance.
3) Know Your Market and Customers
As mentioned, it’s best to do your research before moving ahead with your plan to buy a bar or tavern. The unfortunate fact is that the bar industry has a high failure rate. Only a select few establishments will be lucky enough for a “rescue” like you see on television programs. That means you’ll need to pay close attention to your bar’s size, concept, and clientele.
Next, observe the surrounding area. In addition to finding the amount of nearby bars and taverns (that would be your direct competition), decide whether the location of the establishment would draw in potential new and existing customers.
4) Keep Up to Date on Trends
One of the reasons why many bars and taverns fail (according to experts) is that they neglect what’s most important to patrons, or otherwise make things more difficult than they have to be. For example, the bar industry is increasingly relying on technology to streamline operations and make for a more enjoyable customer experience. So, you should investigate tech tools focused on:
You should also investigate what other similar establishments are doing. Strive to continually make updates in terms of business structure, signage (name and logo), interior design, and similar.
5) Protect Your Investment and Patrons
No one wants to think of the worst case scenario, but the fact is that accidents can and do happen. The bar and tavern business is particularly susceptible to:
As with other companies, there’s also an ever-present threat that you might be sued. Thankfully, there are ways to protect yourself against unplanned and unexpected circumstances. One of those is to secure comprehensive insurance for bars and taverns.
For years, we’ve provided innovative insurance solutions in a variety of concentrations. That includes fire protection insurance, church insurance, business insurance, and more. Contact us today to learn more about how you can safeguard your bar or tavern.