Taking the plunge into bar ownership is not as simple as you may think. Obtaining licenses, securing suppliers, and bringing in the right staff are just a few examples of the intricacies involved. When asking, “What does it take to open a bar?” consider these five steps. Utilizing the right technology will help with everything from the planning stages of your bar to monitoring inventory and optimizing profit. Implementing the right POS solution will help you streamline and organize product and employee information, establish and track metrics, track inventory, automate business processes, and enhance the customer experience. Once in place, all the other parts of your new bar business will align and leave you to focus on your passion.
1. Start With the Basics: The Business Plan
Regardless of the type of business you choose to open, having a concise business plan is mandatory. A business plan will outline, in detail, the intricate financial and marketing elements that go into a business launch and the steps to be taken to nurture the fledgling business into maturity. Several key elements are found in an effective business plan that, when followed, ensure the core functions of your bar are outlined. These elements include:
- Product lines
- Organizational and management structure
- Market sales analysis and projections
Putting this into words and interesting graphics is just the start. You will need a way to track and manage all of the information that is required to help you stay on the path outlined in your business plan. A POS solution for your small business can help you achieve this. Choosing the right one for your bar can allow you to track and develop important metrics to monitor everything going on in your business down to the finest detail.
2. Develop a System for Tracking Metrics to Keep You on Target
In addition to outlining your plans for these areas, you must be able to demonstrate that you can effectively track all of your established business metrics. Since any of the sales metrics you develop must show an accurate view into the overall financial health of your bar, you must choose your metrics wisely, and have the ability to obtain and analyze all of the information required to back up the projections and goals in your business plan.
This is especially important for a bar business, as they traditionally have a high turnover rate, which can make investors nervous from the beginning. Some highly sought-after metrics that you should be especially interested in are items like profit per transaction or sales rate per unique customer. Additionally, having customized reports on hand that can quickly be changed to address important points of analysis will be a valuable tool for staying proactive while automating key processes which is where a good POS solution comes in.
3. Keep Tabs on Your Inventory the Easy Way
Inventory management is often an overlooked component to bar ownership. You must adopt a proactive approach to monitoring inventory usage and to comparing this to sales to streamline your ordering to fit demand. Accomplishing this manually, although possible, would be time-consuming and would not be nearly as accurate as using a software inventory tool.
A POS system will allow you to maintain your inventory controls and to make proactive changes to ordering habits as your data indicates. The in-depth analytic tools will not only tell you what has been selling but will help you better align your products and menus to the tastes of your customers. And with much of this happening in the background, you will be free to charm and impress your patrons.
4. Implement the Technology that Automates Business Processes
A modern POS system that is geared for small businesses will give you the ability to easily track all the key sales metrics in your bar. Being able to demonstrate the performance of any area of your bar is crucial when presenting your business plan to potential investors or financial institutions with confidence. It will also be critical to automate as many business processes as possible so that your bartenders can direct their full attention to the customers sitting on your stools.
The advanced reporting and monitoring features within a cutting-edge POS system are vital components for building and maintaining process controls. Monitoring alerts can be established to re-order products before you run out or to track if an employee has not yet clocked in for their shift. In building key points of automation using POS technology, you will improve the overall customer service experience in your bar.
5. Use POS Technology to Drive an Attractive Customer Experience
Modernizing your bar business through the use of POS technology will help in laying a foundation for attracting customers. Cloud and mobile-based POS options give you ways to easily add effective pieces into the flow of your bar. Ordering becomes more accurate using these tools, as your staff will simply need to tap on a screen at the customer’s side while presenting the customer with more options for optimizing their experience.
Leveraging a POS solution online also opens the doors to contactless ordering options. Placing tablets or QR codes at tables will give customers the option to order and pay without the need to flag down a waiter on a busy Friday night. This also enables them to take their time making a selection, allowing them to enjoy a more relaxing experience in your bar.
What Does It Take to Open a Bar? Dynamic Point of Sale.
Opening a bar can be seen by investors and financial institutions as a greater risk than other small business types. This means that you must have the right point of sale features in place to properly establish and meet the metrics you have established in your business plan.
Additionally, automating tracking processes will streamline service and protect your business from errors in a fast-paced environment such as a bar. This gives you the tools you need to impress all parties from your financial adviser to the party sitting at the corner table.
If you’ve been asking, “What does it take to open a bar?” the POS consultants at talech can help get you answers and remove the barriers to make your dream of bar ownership come true. We consider our time to be your time, and we will spend it crafting a technical solution to drive your bar towards success.
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