Hello all, my apologies for the long post.
I was wondering about some help with a business idea in which I will have to invest a small amount of money, but am unsure if this is the right time to make that jump.
Let’s start with my personal finances; My bank accounts hold about $11,000 dollars and my complete debt is about $3,000. I am a student, I will be starting at a state university after next year, so I expect to have to take loans out then. I am also out of a job at the moment, and have been receiving unemployment aid for the duration of COVID-19. I am single, in my mid 20s, and financially independent from my parents. I am slightly worried about coming back into my career as a moderately successful bartender. I am afraid that I will not see the numbers I am used to, and will watch my savings dwindle.
Business idea and it’s necessary investments;
Now to paint the picture, I live in a city with an interesting bar culture to say the least, the majority are dive-y bars, then swanky social clubs, and then few trendy new bars. Along with the bars in many corporately owned and privately owned restaurants. Most of these places are run by wealthy people who more so enjoy the thought of a bar then truly understanding how to maximize their profits.
I had lived in a more populous city in which the bar scene was more, professional. While I was living there I had the pleasure of managing a popular bar. One of the ways my owners kept the cost low and profits high was by hiring an individual to do bar auditing. Which is exactly what it sounds like, someone to come in, compare what is being rang in by employees, to the physical inventory. It gets pretty complicated after that, but it essentially compares what the bar should be making compared to what they are making in a very detailed report. I’m talking down to the ounce.
Now I know for a fact no one in my new town utilizes these service. My job pre-COVID, and the 20+ most popular bars, which I called and inquired all had the same answer, “we do it ourselves”. Now this might seem cost effective to just do it themselves but I can almost guarantee that they are just holding up the bottle, and writing down it is about “3/4 the way full” and going down the list in this fashion.
So I see this as an opportunity to capitalize these services and take the majority of bars business before someone else catches on.
Why I want to start now when the industry is essentially dead; Most bars have been running a skeleton crew and are earning a very small portion of profit than what they are used to, hopefully within the next 6 months to year we can return to at least 50% of normalcy. Currently “the bar” is running very efficiently because why would the one bartender be giving away/over-pouring when that one bartender is more than likely a manager? Now I would expect as time moves on and bar patrons return there will no longer such transparency and bar owners will begin to lose potential profit as business increases. In short, we all have a favorite bartender and there is a reason for their popularity. Free/heavy poured drinks!!! Yay!! We all do it, don’t feel guilty.
The investment;
The program it’s self, which includes talking points, proven plans, and the accounting software will cost me about $500, along with my materials costing around $300, business license, website etc. probably going to be another $500. I expect there to be a few surprises here and there but hopefully will cap at around $1000-$2000
The profit; Depending on the size of the bar, and the services in which I will operating for the owners I can expect to be making around $600-$1000 per bar. So if I start small with 3 bars, you can do that math. My job will consist of weekly visits, conducting weekly reports all with my equipment on my own. So no real overhead costs on my side.
So should I just jump or should I was until the industry starts seeing a little more movement?
Submitted August 21, 2020 at 08:55PM by greenleafwallet https://ift.tt/2YkPOHd
