I am trying to figure out all expenses, need some help

[theo]

I have an oppurtunity to take over an existing bar. The owner wants to go absentee and let someone else run it. He will let me change the business/theme of the bar. It was successful, but has an unfavorable rep now. The bar is in a Los angeles suburb. I have been bartending in the city for over 10 years and am the bar manager of a different bar I work at now. I would someday like to own my own place and think this could be a great learning oppurtunity.

Small neighborhood bar in middle class neigborhood with lots of homes and appartments in walking distance.

This is what I figure for expenses, please help if I miss anything

Rent
Insurance-liability, workers comp ??
Utilities-water, power, gas, cable, internet,
lisencing, liquor, city, fire dept ???
labor- 5to 6 employees max
alcohol-beer wine liquor
supplies-juice, soda, paper products, reigister tape, bar products

There is no food. Full Liquor Liscence

I am sure there is more. I don't need to know what they cost. I can research that for my area. I need to know any hiding or missing expenses there might be.

[BigFatLiar]

A few off the top of my head:

-Maintenance costs (they add up in a hurry)
-Entertainment costs (dj, etc.)
-Music Licensing expenses
-Garbage disposal

Good luck!

[bruce]

Bar supplies in our bar include straws[several sizes], napkins, mixers, salt, pepper, tobasco, olives, pickled beans, pickled asparagus, hot sauce, horseradish, limes and lemons along with a few other items that are used strictly for drinks. We also go thru peanuts, pretzels and any other salty item that customers want. This is all over above what is related to the food end. Better include cleaning supplies also as they can add up.

[theo]

thank you. Might even hire a cleaning crew

[NewBar]

is rent tenant triple net? if so add cam & prop taxes. Add alarm, advertising/marketing, accountant

[Kodiak570]

Operating capital, cash for drawer(s), decor, glassware, legal, advertising

[rootsreality]

Don't forget bathroom supplies. I can't believe how much I spend for toilet paper and hand towels.

[David]

Wouldn't the owner be covering all of the expenses even though he is absent?

It looks like you will be acting as the owner, manager, employee and any other position that the bar may have. Remember that you'll need to delegate duties to those around you. Don't try and do everything that needs to be done.

One thing that you can look at to see if you are covering all of your bases is the past and current set of books. Everything that you need should be in there. You might need to add a few things but the bulk of the operating needs will have already been addressed.

[originolsin]

Glassware gets broken and somehow walks out the door. Also, pitchers tend to dissappear, which I can't wrap my brain around. You may even be responsible for pool chalk, and broken/tip came off pool sticks. Music licensing.
Let's get this straight, You are going to run everything as if you owned the place. You are going to turn it around, or suffer the losses. If you fail, owner steps back in. If you succeed, owner takes it back and your efforts were all for not? I would make sure there is a rock solid contract here. I have seen it before in my area, guys that make their living leasing a place to someone with a big down payment and a monthly payment they cant make for too long, and then he takes the place back. This guy made around $100k last year off of two investers. Each time it is a couple of kids with a dream and a second mortgage on their house. They do okay for a bit, then realize they cant pay $10k a month for the business they do and it is all just coming from their pocket.

[firetext]

Be sure to budget in a website, someone that will handle your facebook promotions, email promotions, text promotions, flyer designs.

A great way is give all your staff business cards to spread around the city, this card would include 1 free "welcome drink". Cheap way to get people into your club.

FireText Text Messaging Software (http://www.firetext.tv)

[theo]

you guys are great. so many things I have not thought of.

[Virtual Flips]

Don't forget marketing if you plan to reinvent the rep.

[Sports Bar Guru]

I have a blank Bar Profit and Loss that covers all expense categories. EMail me at rschauder926@yahoo.com if you need this. I also have some cost pro formas to help when pricing your drinks' beer and wine.

[drjb]

Hey Theo, if you don't mind me asking where in LA (what neighborhood) is the bar?

[drjb]

Hey Theo, what neighborhood in LA are you talking about?

[theo]

The best part is I have to put no money of my own into it. The owner wants to hire me and my partners as a management company.

We will have a contract.

drjb the bar is in Glendale

[rootsreality]

I have a blank Bar Profit and Loss that covers all expense categories. EMail me at rschauder926@yahoo.com if you need this. I also have some cost pro formas to help when pricing your drinks' beer and wine.

How about posting these in the document library???