Contrary Dependencies

[WyckedMystic]

Hi there,

Thank you in advance for reviewing my question and for any subsequent response you may provide. I am in the very initial stages of researching bar/pub startup opportunities in SE Michigan. I have several years of bartending/serving experience in high volume establishments, and intend to open a venue with a partner who has similar qualifications. We each have a resonable amount of outside business experience as well - he is a successful real estate agent, and I have customer service/call center operational and project management experience domestically and internationally. We each possess a bachelors degree - his in Criminal Justice and mine in Marketing.

We would like to open a bar that will have a limited, quality, menu serving lunch and dinner. The main draw will be dozens of tap beers from around the world. The bar will also stock liquor and limited wine and bottled beer.

We are hoping to secure a loan from a traditional lending institution. There are several dependencies that seem contradictory, and I was hoping you could point me in the right direction. I am curious about the chronological order of the following elements in the state of MI.

*Liquor License Acquisition
*Capital Procurement
*Site Selection

According to the Michigan Liquor Control Commission, before a Class C License will be granted, a site inspection must take place. However, before a site inspection takes place, capital must be acquired, meaning that the loan must be secured prior to the license application. However, there is no guarantee that the state or local government will approve the transfer/acquisition of the license once the site has been determined. This adds up to seemingly impossible dependencies.

I am very confident that once our venue is operational we will be able to run a streamlined operation that will maximize profit and be managed the right way. We each have extensive inventory control experience and many years working in bars. The startup element is my primary concern (along with securing financing, which I'll leave alone for now). We are definitely willing to take our time and do our homework to ensure the proper launch.

Any advice you provide will of course be very much appreciated.

Thanks everybody,

Keith

[The Event Guy]

Wow-not a simple 1-2-3 solution here as it usually never is, but this one is especially tricky because it involves multiple entities of great importance to the project at hand.

I needed to research the answer to this question with friends and have concured that basically you have 2 options:

1.) Use due diligence and research and investigate everything you need to know and understand about each step i.e. state/city laws, regulations, and statutes. Once you understand them, you'll have the power to achieve entitlements and approvals to continue and complete the process.

OR

2.) Hire a real estate advisory company to assemble all the elements of this project and complete all the necesary tasks that include all of step 1.

Now, either road you take will include time, money, and patience. Weigh out your pros and cons, then go forward with the decision.

IMO-I would save yourself a migrane (not the headache) and look into an advisory group. Yes, I know that you still need the money from the lending institution to hire the advisory company, BUT, there are ways to accomplish thi task if you're pro active. The best way to do this, I do not know.

And there you have my thoughts, young grasshopper. Good Luck! :D