We are all familiar with ’reality’ TV, and I admit that I have vegged out to my share of Bar Rescue episodes. While these types of shows are great for both entertainment value and the baseline of advice they impart, there is a severe lack of reality involved when it comes to the seemingly infinite free resources available for these projects (sponsored equipment, mass amounts of labor, professional consulting at zero expense, product in exchange for advertising, etc.). In an industry where failure is much more statistically probable than success, there is a need for REAL WORLD advice for aspiring (and failing) beverage owners. This need translates into opportunity for those with enough experience to provide that advice.

From a sheer fiscal standpoint, liquor is a safe product to market; It sustains a high market tolerance to mark-up, and sales are proven to be resilliant against economic recession. So why do so many bars fail? The answer? The human factor. Nothing frustrates me more than not being able to approach a lending company for financing with a solid business plan, because that plan is tainted with the failure rate of our industry. As beverage professionals, we need to own this fact. If we expect to be taken seriously as a professional industry, we need to work to improve the overall reputation of our business acumen.

I would like to initiate a conversation about real advice to beverage entrepreneurs. While there are, of course, market nuances that play a role in the development of a business plan, there are equations that govern the industry with fair consistency. Deviation from the parameters, more often than not, spells doom. That said, here is my ‘Advice Kick-Off’:

1. Know the numbers. If you are not capable and/or willing to track your total costs of operation on a daily basis, this business is not for you. As with any business, would-be bar owners should be able compose a detailed pro forma. What percentage of your prospective gross sales should you be prepared to allocate to taxes, labor, re-stocking, lease/mortgage fees, insurance, utilities, advertising, etc?

2. Owners need to be present and sober.

3. Know your market. Creating a niche market is extremely high-risk, even for the most experience professional. Understanding a market, and knowing exactly what tolerance that market has for specific trends is imperative.

4. Have a specific identity. Too many places don’t seem to know what they want to be. Remember, if you try to please everyone, you won’t please anyone.

5. Know, intimately, what your needs are in order to deliver your vision to your customers. Knowing what is needed helps to minimize investment, and arms you against salespersons whose motives are often personal commission, not the success of your business.

Please add YOUR advice! Cheers!