How Much Money Should You Have to Lease and Open a Tavern

When you consider opening a bar or tavern as a small business, you need to have at least enough money to operate for three months. Why you might ask? When you open your business, you want to have enough money to pay the bills in case you start out slow. Some businesses open and start out strong, but some take some time to build up a clientele. Before you even open the tavern or bar, you need to have the money for your state, federal and city licenses. This could run you over two thousand dollars depending on your location and regulations.

Before you open, you need to have liability insurance and Workers Compensation insurance, which could run about seven hundred dollars a year. This also depends on your business location as well as the state or city you live in. If you are starting a bar or tavern without any barstools, table and chairs, microwaves, pizza ovens or other kitchen appliances you will need to plan on the cost of these before hand as well. You also need to pay your rent or mortgage.

Once you open the doors, you want enough money for three months. The first month's money will buy your liquor, beer, snacks, cleaning supplies, soda, food supplies and any other things you need to serve food. You need money to start up your heat, electric, phone and water. If you will have cable or satellite TV, this is also figured into the first month's money. You also need supplies for the bathrooms and behind the bar for operations. You are now ready to open your bar or tavern.

The first month monies will include paying wages for employee's if you start with any at all. Many new small business owners try to work as many hours as possible in the beginning to build the business, therefore wages should be low. Now that you are open and making some money, you are putting this in the bank daily. It is adding up with the remaining two months worth of money still in the bank. This money will be used to pay the second months bills while the initial money sits in the bank. If by chance you started slow, you might have to use some of the money from the initial start up monies. This is the reason for three months worth of money in the bank. You are protecting yourself and your small business.