The bar business is one of the most lucrative business in Nigeria.
Research has it that most people love to hangout in bar, or cool off after a hectic day at work, and they do so in bars.
That’s it, you decide to get started: you’re going to open a bar! Between dream and reality, there are many steps to take before realizing such a business project.
In particular, it will be impossible to open the doors of your bar without having followed certain procedures.
What steps should be followed before opening a bar? How to draw up a business plan? How much does the initial investment cost to open a bar? Find all these answers in this article.
This post will provide useful tips on how to start bar business in Nigeria and make huge profit.
1. Create a Business Plan
Your drinking and liquor bar business plan is the written expression of your start-up commercial and financial strategy.
It allows you to take note of your progress, your strategy and the means at your disposal… Where are you? What do you have at your disposal? What do you need ? What are the next steps ?
Start by defining your business project, the reason that makes you want to open a bar so much.The type of bar you intend to establish.
Types of Bar You Can Open
Below are some types of drinking bar to step up in Nigeria and make profits.
- Neighborhood Bar
- Specialty Bar
- Club Bar
- Tapas Bar, Shisha bar
Once the concept has been determined, choose your visual identity, the name of the bar, and even a logo! Whether on the internet or on site, your establishment must stand out and be easily identifiable.
2. Find Funding
Today, it is estimated that it takes between N250,000 and N400,000 to finance the opening of a bar in Nigeria.
It is difficult to manage alone to reach this amount, but there are solutions such as bank loan, or grants,savings, borrowing from family and friends.
Start by defining a broad budget (rent, charges, salaries, equipment, training, etc.), and estimate the time it will take to become profitable.
3. Choose a Legal Status
Opening a bar requires creating a company. In Nigeria, the most used form is the Limited Liability Company.
It can have between 2 and 100 partners, with different responsibilities depending on their contributions. You can also decide to run a sole proprietorship
4. Find the Right Business Premises
The commercial space is the place that you will rent or buy to make your bar.
You will have to visit several to find the right one, so it is best to have detailed your needs beforehand.
To make your choice, several elements will be taken into account:
Good location: busy area, beautiful storefront, close to your target..
Suitable area: Each additional square meter has a cost. Depending on your project, you will not necessarily need the largest space in your city.
Consider getting a good layout can make the difference and allow you to accommodate enough visitors.
Also consider finding a room with a terrace, which will allow you to attract more people.
Accessibility: public transport and parking spaces nearby.
The current state of the premises: is it new? Should all the plumbing be redone?
Development and decoration work will be necessary so that the room is in line with the identity of your concept, but anticipate the budget that more substantial work will represent.
5. Equip that Bar
Once the commercial space has been found, it is time to bring it to life.
Determine all the equipment you need, from furniture to decoration.
Equipment to Equip a Bar in Nigeria (non-exhaustive list):
- Shaker and other cocktail utensils
- Ice machine
- Glass washer
- And more !
You can request different quotes to estimate the cost of your equipment, the creation of a custom counter, etc.
But you have to see it as an investment, since by equipping yourself with durable and timeless equipment you will be able to last over time.
6. Recruit the Right Team
One of the key elements that will make your bar strong is your team members.
Depending on the size of your local, you will be able to determine the different positions you will need, what type of contract to recruit them under, and more.
Make sure you have a cohesive team, and that you have had the time to train it and integrate it well before opening your doors.
7. Announce the Opening of the Bar
Now that you’ve followed all the steps to open a bar, you should be ready.
But for a successful first day, you have to promote your event well to attract as many people as possible.