BAR: How to Open One and What Are the Costs?

Would you like to open a bar in your city but don't know where to start? In this guide on how to open a bar I will explain what you need, how much it costs and where to find financing for the initial investment.

Choose the venue for your Bar

Opening a bar in the city center, where hundreds of people pass by every day is not a sure sign of success.

What matters then is what you want to achieve. There are many bars in the suburbs that are successful because they know how to take advantage of the positive points of their establishment:

• They have a large parking area;
• They allow you to relax

In the center you usually don't need too much space. It is sufficient that it is possible to have a breakfast or a drink quickly. If you open in the suburbs, you have to have a place to sit, relax, listen to good music.

The furnishings

The furnishings, the colors, the combinations are very important. A sober, elegant decor will especially attract workers.

More colorful decor will attract young people and families. Prefer a combination of two colours, one brighter and one neutral.

The business plan of a Bar

Before starting, write down what the costs, financing, your budget, accountant costs and taxes are.

Remember that you need all the permits to open a public establishment that serves food and drinks. You must have certain requirements and specific licenses and permits.

Don't think that the gains will come right away. Try to put your place, your customers first. Accept criticism and advice. A successful bar must in fact:

• Have excellent quality of food and drinks;
• Ensure fast and punctual service;
• Have smiling staff.

It is necessary to know the sector. These are even banal things, for example:

• Understand the moments with the most customers;
• Know the suppliers;
• Make a calculation relating to stocks;
• Know the best products quality.

These and many others are the aspects of managing a bar or a restaurant. The best thing to do is therefore to train just long enough to understand how the main aspects work.

Permits and Licenses

• You must verify that the place is in compliance with urban planning requirements with a good surveyor who will take care of submitting the SCIA to the Municipality (Certified Report of Start of Activity).

• Obtain the HACCP (Hazard Analysis and Critical Control Points) certificate. The course usually lasts about 15 hours and costs from 50 to 100 euros.

You must therefore possess at least one of the following requirements:

• You have attended a food trade course recognized by the Region;
• You have a sector qualification;
• In the last five years, you have worked for two years, as an employee or on your own, in companies in the sector food;
• You have been registered in the trade register (REC);
• If you open the bar in partnership, at least the legal representative must meet the requirements.

You will have to self-certify the documents certifying these requirements and always keep them available. At the Chamber of Commerce you can find the various self-certification models.

The costs of opening your Bar

Let's see a list to give you a general idea of the expenses:

For a medium-sized rental space there are 500 euros per month.

Furnishings: 2,000 euros;

Equipment: 1,500 euros;

Utensils (glasses, cups, saucers...): 500 euros;

Raw materials to start: 1,000 euros.

Accountant: 1,000/1,500 euros per year;

INPS: 3,000 euros per year.

In total, you will therefore need at least 10,000 euros. However, the cost may increase depending on the city. In fact, the cost of rent has been estimated at 500 euros per month for a medium-sized bar (50 m2).If we talk about a bar open in the center of Milan, you might have to pay 5,000 euros a month.

The Franchise

Franchising represents an interesting opportunity. A large company allows you to use its name and helps you open.

Some franchises create the whole bar, according to their business model and deliver it to you.

However, keep in mind that you will then have to pay part of your earnings to the company that grants you the franchise. You pay commissions to this brand, both when you open and for the duration of the franchise agreement.
However, franchising does not guarantee you a good exit. Success depends on your strategies and management skills.

Financing

If you are looking for financing you must absolutely follow the Ministry of Development. It is the state body that decides which funds to dedicate to sectors, projects, national areas, to young people and not, to female entrepreneurial projects or to other categories that need an incentive.

Financing is usually:

Non-refundable, when part of the loan must be returned to the State, with a very low rate compared to a bank.
To find out if there are loans of this type for your project, constantly check the Invitalia website, the agency that deals with the granting of incentives and financing.

If you want to know how to best manage your place, click here.