Business Plan of a Bar

Business Plan of a Bar

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Business Plan of a Bar

Executive Summary

This business plan focuses on the creation of a bar. Various services are offered in a bar, but this case focuses on serving alcoholic drinks such as liquor, wine, cocktail, and beer. The number of people taking alcohol has increased over the past few years. However, the government has put in place the strategies that allow only people who are more than eighteen years old to consume alcohol. As a result of this restriction, the market that business intends to achieve are individuals who are above eighteen years old. This group will include both male and female. As identified earlier, the number of people who consume alcohol regularly has increased over the years. This number has not reached the end; some new people start drinking alcohol, and this poses a potential growth for the market for this business. Therefore, this business aims to increase its customers through various promotional services and advertisement. The high number of customers will then help the business to increase its profit. The target that the business aims to attain is revenue of more than $20000 per month. When starting the business a lot of money is required to set up the place. This budget entails the purchasing of all the equipment include furniture and the utensils that will be used. The other aspect that will have to be catered for is the workforce whereby the business is expected to hire an individual who has the experience of working in a bar. The inclusion of these elements will result in $ 500000 which is the total amount that will be required to start the business. The business will need $ 300000 to maintain it for the five years so that it cannot collapse in the event some challenges occur and affect the revenue of the company. The main source funds that will be used for this business will be acquired through loans. Based on the projected revenue generation for this business, the loan will be repaid for two years. This business is sensitive, and certain critical issues have to be observed. One of the critical issues is the security of the clients. Bars are sometimes associated with violence after people have become drunk. The other critical issue that may affect the success of this business is the presence of suppliers. The business has to ensure that the suppliers are consistent so that there will be a product for clients every time. The last issue is the employees who will working for in the bars. The employees have to be careful and ensure that everybody pays the bill for the drinks taken. The main assistance that would be required during the launch of this project is the support from the manufacturers of various alcoholic drinks. These manufactures can provide support so that they can use the bar to market some of their products and the revenue earned will be shared.

Enterprise Description

The idea of developing the business plan was to sell alcoholic drinks to its clients. Facto that led to the development of this business idea was that there was an increase in the number of people who go into bars to take drinks, listen to leisure’s and have fun. Several bars have been established in the vicinity but thy have a small capacity, and they cannot hold the increasing number of people who take alcohol daily. As a result, this idea was born because it will help to create more space for the client thus reducing the congestion. Also, this line of business was selected because it will promote the entertainment scene which there has been a demand over the past few years. The main personal qualities that will be invested in this business is patients. Before a bar picks up and starts to bring the expected revenue, it might take a long time because it is new and not every client is aware of it. The other personal qualities that will be invested in this business is commitment. Through commitment, all the activities that are carried out in the bar will have to be monitored closely to identify whether they are running smoothly. In case there is a problem a solution will be devised immediately to enhance the continuity of business. The experience that will be required to run this business is good financial knowledge. This knowledge will be essential because it will help to guide how the money will be managed to ensure that every item caters for in the bar. This concept of business is innovative because it will involve the use of bar guns which has not yet been embraced by other business in the same field. The bar guns will be used to various mixed components to create drinks such as CO2 with Soda Syrup and after that distribute them to the respective customers. The use of this bar guns will ensure that that drinks as provided to the customer at a fast rate and right amount. There is a need for this product in the market because of the increased number of people who consume alcohol. Also, the demand for entertainment has increased, and most of these activities are conducted in bars. Since the number of bars is less, they cannot accommodate the increased demands. Therefore, the development of this business will help to meet this rising demand. In the medium term, this business will have to expand increased the number of customers thus helped to the congestion experienced in other bars. In the long term, I see this business being leading in the entertainment industry that will promote various activities such as shows and other major concerts.

Product Description or Service

The main services that will be offered in this business include service of different alcoholic drinks to the clients. Also, the bar will be able to provide the customers with club services whereby they will have a place that they can enjoy music as they relax while taking their drinks. The innovative feature that is associated with the service provided is that the mode of payment will be cashless. Also, the use of bars will be employed to help in developing alcoholic drinks and serve them to the customers. The products that will be offered by this bar are mainly cocktails which are obtained from mixing different alcoholic drinks. These products will be unique from other businesses that sell their products how they ordered from their suppliers. The main selling points that are related to the products offered include providing the product at a lower price to the customers, high-quality alcoholic drinks and serving the client within a short time. The pre

sence of these products will satisfy the expectations of the client because most of them will be able to get quality alcoholic drinks at a lower price. Also, quick processing of orders will ensure that the client is satisfied because most of them want to be served faster.

Industry Analysis

The industry that this business intends to operate in fairly large. As seen earlier, the number of people consuming alcohol is very high. The high number requires various bars that will meet the demands of these people. As a result, there are many bars which have been established in different places to meet the needs of different customers. This element shows that these sectors are huge and the business will have to develop proper strategies that will help it to be successful.

The major trend that is evident in this business is that it is constantly increasing. The number of people who consume alcohol in bars is always on the rise. Many of these individuals are forced by different circumstances to start taking alcohol such as stress or peer influence.

One change that is evident in this business is that most bars have started creating their drinks. These bars will come up with the menu of the drinks that they offer. Most of these drinks are created from mixing different varieties of alcohol to come up with a new drink. This change has been embraced in most bars, and the customer has welcomed it since they order frequently. Another important change within this sector is using cashless mode for payment. These changes are essential in business. For example, the creation of new drinks that have a unique taste has been embraced by different customers which is significant in increasing the revenue of the company. Also, the use of a cashless system to pay for orders is important for the company because it will help to monitor the sale of orders.

In regards to the PESTLE analysis, different political, economic, social, technological Legislative and Environmental changes could affect the business either long or short term. The political changes that may affect the business is when a new government takes charge (Zalengera, Blanchard & Eames 2014). When the new government takes charge, it may come with strict rules that might reduce the freedom that the bar has in its business. Therefore, the bar might be forced to limit the services or the products it provides to its customers. The economic change may affect the business in that when the economy is high the revenue earned by these companies will be low since a lot of expense is used to purchase different items (Fozer et al., 2017). The social change will affect the business in that when the demographic characteristic of the customers of the company changes, their operation of the business will change to suit the needs. For example, if the bar experiences a high number of customers who are mostly older, it will have to switch how it provides its services as well as the products being offered. Technological factors is another element that will result in long term changes in the business. New forms of technology are being developed daily. Implementing these forms of technology will help the business to carry its services swiftly and faster. The main change that environmental factors may have a medium impact on business. Environmental change may involve the weather. During cold weather, most people are less likely to vest the bars because of the fear they may get flu and other illness associated with cold weather (Cadle, Paul & Turner 2014). The last factor is the legal factor which may have a long term effect on the business. New laws might be developed such as the time that the bar is expected to operate. This law will have a long term effect on the bar business because it is a rule that will have to be observed. Entering into this business is a challenge because there are a lot of expenses that will have to be incurred from getting a license and buying all the required equipment for the business to run smoothly.

Competition Analysis

It is important to understand the competitors so that strategies can be employed to help the business gain mileage over them and succeed. The main competitors for this business is the Franchise’s bar that is found in Florida that sells liquor at a very low price. This business will attract a high number of customers who will prefer getting cheaper alcohol. The main strength of this bar is that the prices for their product is low and they offer in large quantity. This business will get many customers because people always prefer quantity over quality. The best way that the company can be different is to maintain the quality of the products it offers. As much as many people will go to the pubs, others will prefer to get quality services, or products will still visit the bar. The best way that the products offered in business can be competitive is to produce quality products that will be sold at a lower value. This approach will ensure that these products attract customers who prefer cheap services. As much as these competitors may attract a large number of customers, they have a small market share.

SWOT Analysis

The SWOT analysis can be used to identify the strengths, weaknesses, Opportunity and the threats that are associated with this business. The major strength that is associated with this business is that all staff members are experienced and have the necessary skills (Borland & Lindgreen 2013). These individuals will ensure that the business is running effectively and all goals and objectives are being met. The weakness associated with this business is that sometime, the employees may become disorderly and cause commotion in the bar. The other weakness that is associated with this business is that the employees and the clients may break some of the equipment used in the bar. Even though these problems are present, there is an opportunity that has not yet been explored by the company. The opportunity that lies for the company is that the demand for alcohol is increasing daily (Todor, 2016). Therefore, the business will acquire a bigger market size within a short period. The threat to this business is the increased number of bars being opened. Many people will always want to try new bars when they are opened, and this may lead to a reduced number of customers hence low profit.

The Marketing Strategy

Marketing strategy is one of the most important elements in business. The marketing strategy that will be used for this business plan is the marketing mix 4ps. This marketing strategy will focus on the product and ensure that it meets all the needs of the consumers (Fan, Lau & Zhao 2015). The second issue that this product will focus on is the place. The place from which this product will be sold will be at the location of the bar. The customer is the next issue of the marketing 4ps which explains that the company will have to obtain feedback from a different customer so that they could meet their needs and maintain them. The fourth element is the promotional activities(Fan, Lau & Zhao 2015). Promotional activities are important because they help in making the product to be known to the target market. The main promotional method that this business will employ is the use of the internet whereby information regarding its services and the product it provides will be posted on different websites in the form of advertisement. The other way that promotion will be conducted is through sponsorships(Fan, Lau & Zhao 2015). The companies the sponsors the business will create awareness of its presence as well as the product it offers.

The Operation Plan

The major method that the business will operate is that it will rent the place as it begins. This place is convenient because the customers can easily access it. However, after five years the business will start to build its new premise if a business has progressed well.

The Human Resource Sub Plan

This section focuses on the management structure of the business. The employees of the business will be well trained so that they can perform their duties as expected. These employees will be expected to work both part time and full time. The other issue that will be considered is the safety measures. This business will operate at night, and when people are drunk, different forms of disasters are bound to happen. Therefore, the safety measures will be developed to prevent people from being injured in the event a disaster occurs. Leadership is the next issue that is related to human resource. Different modes of leadership can be used for this business. One of these models is GROW. The GROW model requires a leader to establish the goal and then examine the reality. After reality has been examined, the options will be explored. Later on, the leader will develop the will on how the intended goal can be achieved. The other model of leadership that can be used in this case is Boyatzis’s theory. This theory focuses on self-development that a leader has. This model of leadership provides a reference point for middle leaders to support as well as challenge their plan.

Financial Information

Financial information is the most critical part of every business because it helped to monitor how the funds move. The first factor within the financial information is the amount that will be required to start the business. The amount that will be required to start this business is a total of $500000. This money will cater for the purchase of all the equipment and to hire individuals who are qualified as will work effectively at the bar. The control of the cash flow will be monitored to the statements provided by these automatic modes of cash transfer that will be used at the bar. In the event some changes will be required in the business, the source of the cash that will be used will be from the profits that the business has earned.

References

Zalengera, C., Blanchard, R. E., Eames, P. C., Juma, A. M., Chitawo, M. L., & Gondwe, K. T. (2014). Overview of the Malawi energy situation and A PESTLE analysis for sustainable development of renewable energy. Renewable and Sustainable Energy Reviews, 38, 335-347. Retrieved from: https://www.sciencedirect.com/science/article/pii/S136403211400375X

Fozer, D., Sziraky, F. Z., Racz, L., Nagy, T., Tarjani, A. J., Toth, A. J., … & Mizsey, P. (2017). Life cycle, PESTLE and multi-criteria decision analysis of CCS process alternatives. Journal of cleaner production, 147, 75-85. Retrieved from: https://www.sciencedirect.com/science/article/pii/S095965261730063X

Cadle, J., Paul, D., & Turner, P. (2014). Business analysis techniques. Chartered Institute for IT.

Borland, H., & Lindgreen, A. (2013). Sustainability, epistemology, ecocentric business, and marketing strategy: Ideology, reality, and vision. Journal of Business Ethics, 117(1), 173-187. Retrieved from: https://link.springer.com/article/10.1007/s10551-012-1519-8

Fan, S., Lau, R. Y., & Zhao, J. L. (2015). Big data analytics for business through the lens of the marketing mix. Big Data Research, 2(1), 28-32. Retrieved from: https://www.sciencedirect.com/science/article/pii/S2214579615000155

Todor, R. D. (2016). Blending traditional and digital marketing. Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V, 9(1), 51. Retrieved from: http://webbut.unitbv.ro/BU2015/Series%20V/2016/BULETIN%20I%20PDF/06_Todor%20R.pdf