By Liane Cassavoy, Entrepreneur magazine
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Extra info for Start Your Own Bar and Club
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The line gets a little fuzzy between some ownership structures, such as a limited partnership vs. a limited liability company. In a limited partnership, there’s at least one general partner and one—or more—limited partners. The general partner can be held personally liable, which makes this a risky proposition for bar owners. In an LLC, the owners are shielded from the debts, obligations, and liabilities of the company. The best rule of thumb when drafting any of your business agreements is to get it all in writing.
One thing you probably already know about the bar industry is that you’re in the business of fun! So you can have a blast while you’re making decisions such as the type of bar you want to own, and what kind of concept you want it to have. Here are some research tips to help you make your decisions: Visit as many of the bars in your community as you can. ) Write down what you like and what you don’t like about each of them. Can you see yourself in this type of bar? Break the bars up into categories.
You can choose to go either way or find your own level of commitment somewhere in between. All the experts we interviewed say you need some kind of experience in the bar or restaurant industry. “There’s so much to know about the bar business. If you don’t have the right kind of experience, it could cost you thousands of dollars in mistakes,” says Ron Newman, the sports bar owner in Manhattan Beach, California. ” Your experience will come in handy when you need to step behind the bar and take over when a bartender doesn’t show up for work on time or when they’re overwhelmed with an unexpected rush of business.