Bar Finances require that before starting or buying a business one must have a full understanding of the financial and legal obligations of such. Quite simply for any business to succeed income must exceed expenditures. To achieve this end it is suggested that you have a sound and structured plan of action.
This plan of action should include:
A sound realistic business plan is a necessity if indeed you are looking to procure financing. It will state how much money you need to get started and explain how you are going to show a profit.
Statement of Income
A statement of income offers a month by month summary of sales and expenses giving a statement of profits.
Cash Flow Report
A cash flow report states when money is coming in and leaving the business. It is fact a statement summarizing the cash flow situation of the pub.
An actual count of the inventory on hand as compared to the sales at any point in time. It is absolutely necessary to keep you advised as to loss or waste in your system. It will also alert you to theft that is occurring.
Early in the process of setting up the business an accountant must be hired. The accountant can help you in setting up a business plan when attempting to procure outside financing. This accountant should have relevant pub and bar experience
Also early in the process an attorney should be hired as this professional will ensure all the required legal paperwork is in order. The attorney can review contracts with suppliers, set up partnership agreements, file for permits or incorporate the business or set up partnership agreements.
It is also important to buy insurance for the business. Therefore it is suggested that you align yourself with a known trusted insurance agent. Considerations are water and fire damage to the premises, break in, robbery or if someone sues you.