Expect to pay between $2,000 to $6,000 annually for insurance depending on the capacity and size of your bar or club. InsuranceĪnother bar and club operating expense that you can’t avoid is insurance.
#Live entertainment expense bar license#
In many states, you’ll need a license to play both recorded and live music in your bar or club. For example, a beer and wine license in California will cost between $3,000 and $5,000 annually.ĭon’t forget that after being approved for a license, it may take up to two months to be issued, so plan ahead. Types of licenses and their cost will vary from one city to the next. If you’re going to be selling alcohol on the premises, it’s mandatory for every bar and club to have all the right licenses. You’ll need to renew your business license each year, with the annual cost averaging from $200 to $1,200.
#Live entertainment expense bar registration#
The cost will vary in each city or state and will usually include a filing and registration fee. You’ll need a business license to operate your bar or club. In order to run a legitimate bar or club, operating costs will need to include all the necessary licenses, permits, and insurance: Business license An optimum operating reserve of $75,000 to $100,000 is recommended to give your bar or club a safety net. This money is there to cover unexpected expenses, such as repairs, or cash flow problems. Operating reserveĭon’t forget to add an operating reserve to your startup costs. Then forecast how much of each you’ll need based on capacity of clientele for the size of your bar or club as well as your projected opening sales. Don’t forget mixes if you’re serving cocktails and mixed drinks.Įvaluate your menu and build an ingredient list, including alcohol and food. Determine what types of alcohol you’ll need, such as beer, wine, and liquor. Ongoing inventory will be part of your daily operating costs, but you’ll also want to factor in your starting inventory for the drinks and food you’ll be serving when you first open. Some of the things to consider for running a successful bar include: To keep costs to a minimum, consider buying second-hand equipment when possible. This may mean adding to existing equipment or buying new. Whether you’re buying an existing bar or club or starting your own, you’ll want to ensure you have the right equipment to run your business. After factoring in new fixtures, lighting, furniture, and building permits, the costs of a renovation can range from $50,000 to $100,000. Cost of renovationsīuying an existing bar or club may mean renovations to design the interior to reflect your brand and concept. Starting your own means that you’ll have to add in the additional opening costs of architecture and design, building permits, and construction costs. You can purchase a bar that’s already established for as low as $25,000. Startup costs will also vary on whether you’re buying an existing bar or club or starting one of your own. The other option is to purchase a location and pay a mortgage, which is usually between $200,000 and $850,000 depending on size and location. If renting space, you’ll need to factor in the expense of a security deposit and several months of rent in advance. Renting or purchasing locationĪnother startup consideration is renting or buying the location. The opening costs for a club can be over $500,000 due to higher expenses for space, utilities and equipment. If you’re planning on opening a club, be prepared for higher costs.
![live entertainment expense bar live entertainment expense bar](https://fireicebar.co.uk/wp-content/uploads/2020/10/IMG_6926-scaled.jpg)
While you can open a neighborhood bar for approximately $25,000, starting specialty bars, such as a brewpub or wine bar, may cost upwards of $100,000 depending on the product you’re serving and where you’re located. Whether it’s a small pub, sports bar, brew pub, or busy club, the type of bar you want to open will also make a difference to startup costs. Buying an existing small neighborhood bar may cost you as low as $25,000 while building a new bar in the downtown district of a city could cost you more than a million dollars. Whether you’re buying an existing bar or renting the premises, cost will vary in different areas. The location of your bar is going to play a big role in startup costs. Here are the main factors to consider as you determine your startup costs: Location Startup costs will depend on a variety of expenses, with each bar having a different specific set of costs. Before you’re even close to opening the doors of your bar or club you’ll need to consider the startup costs.