New business owners have a high rate of failure. You need to have financial backing, money to burn, or a large line of credit that will carry you through the first few years. You are not going to have the next new idea and win out of the gate. The odds are against you.
You are going to lose money and essentially subsidize the business while it develops.
Here is an interesting site on new business failure and the timelines and reasons:
I worked in a Greek restaurant when I was young, and have spent a great deal of time observing my local bars. So my advice is probably mostly worthless, however, here it is.
You cannot just hire a manager and sit back and watch the show. You have to **be **the manager and plan to spend a large number of hours there, every day of the week, at least while the business gets up and running, the first 5 years.
Don’t hire your relatives or friends to be employees. Just don’t. Be professional, if you really have professional friends or relatives give them a shot at your own risk.
Employees will assume that you are making money hand over fist and see that as a reason to skim a little here and there. Stay on top on your cash flow.
Install a POS system right out of the gate. Not a Piece of Shit, a Point of Sale computerized cash register system that tracks inventory, what items are being bought, and tells you what items to remove from stock or menu. This is a very valuable tool. Essential. And once your employees realize the capabilities of the system, they will realize that they can’t steal for long without you or another employee discovering it.
Location, Location, Location! Just being on the wrong side of the street can make a huge difference. If you are buying a bar that someone else has failed at, really take some time to look into the ‘why’.
And protect your assets with a LLC before you even start. Only fools have a sole proprietorship. Creditors can come after anything you own, your house, your cars, anything if you do not protect yourself within a LLC or full corporation.