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- May 20, 2008
A couple of friends are working on creating an snack bar
What types of businesses are you creating or working on?
What types of businesses are you creating or working on?
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(warning, no cliffs. )
competition, yes. When you get into the bar/restaurant market, you NEED to make sure you can attract customers. After all, they are the ones that are going to keep your business open. Here in town, before we opened, we decided on a theme that was a rarity here in town. We decided on craft beers and lots of handles (beers on tap.) At the time, you could go to a bar here and there that had this beer, but NOT that beer. You'd have to go to the next bar to get another "rare" beer. So, we decided to carry about 300 types of bottled beer and put 30 beers on tap. Not the bud lights and the PBRs and the water stuff, but quality IPAs, porters, stouts, ciders, etc. We wanted to make sure that a person could come to our bar and get a Lagunitas IPA, then a 15th anniversay firestone ale, and maybe an Infinium. (of course some of you might not think these beers are that big of a deal, but at the time, there weren't many places you could go that offered the $3.00 bottle up to the $35 bottle.)
When we opened, we were strictly beer and wine. That was unheard of in our part of town because there are 5 bars in our area within a 3 block radius and all of them had hard liquor. So, we began thinking, "how can we get the people that are ALREADY in the area to drink to come to OUR bar?" And the solution is offer something the other's couldn't offer. If we would hvae entered that market with the same businessmodel as the next place, I can guarantee we would be closed already.
Now, there are SO many variables to a business is ridiculous. It's like trying to predict what your customers want next so they can continue to come back. In the short time we have been open (about 3 years) there have been about 8 other places in the same part of town that have opened up with a similar bisiness model. WE KILLED IT for the first 8-10 months WITHOUT hard liquor. Then, these other big businessgroups with other business in the area saw what we were doing and basically did it better. They spent more money on the appearance of their spot, they offered people better prices on the same products, etc. They basically tried to drive us out of the market (just like starbucks does to these mom and pop coffee shops in your local town.)
So, it was back to the drawing board. How can we get people back in here. And beleive or not, customer service and good bartenders will do it for you. People don't mind paying 5-10% more if they're getting great customer services. Like most places that open up with a little hype, people are going to want to go check it out. And depending on the size of your city, your customer service, and the competition, your business will be the NEW SPOT for a while. But, businesses fail because they don't/cant get people to come back. A business will not make money on the first time a customer spends their money at your establishment... its getting them to come the 2nd and 3rd and 4th (etc.) time where you start making money. If thoese people are coming back, they are likely to tell their friends about your spot.. and now you have new customers. Alternatively, if someone comes the first time and they have a terrible first experience, they go and tell a friend (or 5), then those people tell at least one other person, and thats the start of the downward spiral.
Anyway, I think I am getting a bit off topic. I love talking about this stuff and helping other people start up their businesses. I've been helping a few other spots around town, some successful and some not so successful. Part of it is the economy and the time these places are entering the market. Sometimes there is nothing you can do to get a business to get off the ground. MOST people don't have tens of thousands of dollars to place TV/radio commercial ads to inform the public about what you have to offer. . So, the best marketing you can get is a happy customer. Just like all of us reading this, everyone budgets to go out, whether its to eat, a movie, drink a beer, etc. . It's jut a matter of HOW you can get those people wtith their limited budget to spend THEIR hard earned money at your establishment.
just finised reading the thread about dude who started his own headphones. read the good and the bad... and that made me want to reply to this post more.
I am co-owner of a local bar here in town. Sounds like you have questions. ask away ... I think this can turn out to be a good thread. (not that I can provide the answer you're looking for, but I can answer in regards to my situation.)
(warning, no cliffs. )
competition, yes. When you get into the bar/restaurant market, you NEED to make sure you can attract customers. After all, they are the ones that are going to keep your business open. Here in town, before we opened, we decided on a theme that was a rarity here in town. We decided on craft beers and lots of handles (beers on tap.) At the time, you could go to a bar here and there that had this beer, but NOT that beer. You'd have to go to the next bar to get another "rare" beer. So, we decided to carry about 300 types of bottled beer and put 30 beers on tap. Not the bud lights and the PBRs and the water stuff, but quality IPAs, porters, stouts, ciders, etc. We wanted to make sure that a person could come to our bar and get a Lagunitas IPA, then a 15th anniversay firestone ale, and maybe an Infinium. (of course some of you might not think these beers are that big of a deal, but at the time, there weren't many places you could go that offered the $3.00 bottle up to the $35 bottle.)
When we opened, we were strictly beer and wine. That was unheard of in our part of town because there are 5 bars in our area within a 3 block radius and all of them had hard liquor. So, we began thinking, "how can we get the people that are ALREADY in the area to drink to come to OUR bar?" And the solution is offer something the other's couldn't offer. If we would hvae entered that market with the same businessmodel as the next place, I can guarantee we would be closed already.
Now, there are SO many variables to a business is ridiculous. It's like trying to predict what your customers want next so they can continue to come back. In the short time we have been open (about 3 years) there have been about 8 other places in the same part of town that have opened up with a similar bisiness model. WE KILLED IT for the first 8-10 months WITHOUT hard liquor. Then, these other big businessgroups with other business in the area saw what we were doing and basically did it better. They spent more money on the appearance of their spot, they offered people better prices on the same products, etc. They basically tried to drive us out of the market (just like starbucks does to these mom and pop coffee shops in your local town.)
So, it was back to the drawing board. How can we get people back in here. And beleive or not, customer service and good bartenders will do it for you. People don't mind paying 5-10% more if they're getting great customer services. Like most places that open up with a little hype, people are going to want to go check it out. And depending on the size of your city, your customer service, and the competition, your business will be the NEW SPOT for a while. But, businesses fail because they don't/cant get people to come back. A business will not make money on the first time a customer spends their money at your establishment... its getting them to come the 2nd and 3rd and 4th (etc.) time where you start making money. If thoese people are coming back, they are likely to tell their friends about your spot.. and now you have new customers. Alternatively, if someone comes the first time and they have a terrible first experience, they go and tell a friend (or 5), then those people tell at least one other person, and thats the start of the downward spiral.
Anyway, I think I am getting a bit off topic. I love talking about this stuff and helping other people start up their businesses. I've been helping a few other spots around town, some successful and some not so successful. Part of it is the economy and the time these places are entering the market. Sometimes there is nothing you can do to get a business to get off the ground. MOST people don't have tens of thousands of dollars to place TV/radio commercial ads to inform the public about what you have to offer. . So, the best marketing you can get is a happy customer. Just like all of us reading this, everyone budgets to go out, whether its to eat, a movie, drink a beer, etc. . It's jut a matter of HOW you can get those people wtith their limited budget to spend THEIR hard earned money at your establishment.
can you give us some rough number for the start-up costs associated with starting a bar?
In the early steps of planning to open an ornamental saltwater fish & coral store. I have a passionate team and the perfect location. The only drawback is that I want to do the store in Upstate NY and I'm in the DMV right now. Also, my partner is in Upstate NY. I'm wondering if this will be feasible because of the distance. For now... I can write the business plan and send it to my partner to revise/add. I'm concerned about what to do when the business starts to materialize. I want to be involved and manage as much as I possibly can but it will be hard once things get running and I still have my regular job.
Where is your business located? Business/Entrepreneurship has always been my passion. Not for the faint of heart, but I respect and would rather my money support businesses like this.
Good read and I hope your business thrives.
also how you went about getting funding
i have visions of opening a bar/restaurant type establishment a couple years down the road. just stacking paper right now and thinking up ideas
@DC
What was the hardest part of starting your business ?
How soon did you start turning a profit?
I read you still have a another job? Does this not make enough money? Any reason why both ?
nice story DC. so strong clients have made you strive through the competition?
DC, would this happen to be Alley Katz?
*edited*
I've known a lot of people with ideas for bars. I would highly encourage anybody interested in starting a venture like that to check with your local boards and regulatory agencies for information about permits or restrictions.
best of luck to all of NT's entrepeneurs!