That may also include the liquor license. Those things are starting to go for $1 million or more.
That is why you are starting to see sister chains right next to each other, so they can share the license and defray costs over two restaurants.
Anyone know how to go about getting a loan to start a business?
- Thread starter 87grandnat
- Start date
That may also include the liquor license. Those things are starting to go for $1 million or more.
That is why you are starting to see sister chains right next to each other, so they can share the license and defray costs over two restaurants.
87grandnat
Active Member
- Joined
- Oct 14, 2003
It isnt including the License but this place was a very profitable place. The problem with getting somewere smaller is if you get a liquor license you dont have the room to put as many customers and that license could kill you
Joshua
Joshua
V8Assassin
100mi away ready 2 strike
- Joined
- Jun 6, 2007
Run the Numbers Backward and Forward
Bump! Be very careful what you wish for. However, if you really want this to work your business plan should focus very carefully on the numbers at hand. This is what we know:
16k lease, liquor license, utilities, taxes, inventory, wages, insurance, advertising, maintenance, equipment, legal expenses, and this has not mentioned the actual operating capital. The annual lease alone is $192,000. My question is this, are you sure 250k will actually be enough? As a business owner I can tell you taxes are not cheap. When people think of taxes most think of federal income tax. Not business owners. Federal income tax is the tip of the icebug. They want up to 35% of the net, let me repeat that, 25 - 35% of net depending on actual amount. This is after you have paid 941, 940, work comp, sales tax (probably higher rate on rest/bar), state franchising tax, and there are a few more.
I am not trying to make it seem impossible, but I believe some of the guys are right. Go find someone with deep pockets and does not want to be part of the day to day operation. You may only end up with a percentage of ownership, but it is a start. From there who knows maybe one day you will be the financier and give a young guy a start in the bar business yourself. Good Luck!
Bump! Be very careful what you wish for. However, if you really want this to work your business plan should focus very carefully on the numbers at hand. This is what we know:
16k lease, liquor license, utilities, taxes, inventory, wages, insurance, advertising, maintenance, equipment, legal expenses, and this has not mentioned the actual operating capital. The annual lease alone is $192,000. My question is this, are you sure 250k will actually be enough? As a business owner I can tell you taxes are not cheap. When people think of taxes most think of federal income tax. Not business owners. Federal income tax is the tip of the icebug. They want up to 35% of the net, let me repeat that, 25 - 35% of net depending on actual amount. This is after you have paid 941, 940, work comp, sales tax (probably higher rate on rest/bar), state franchising tax, and there are a few more.
I am not trying to make it seem impossible, but I believe some of the guys are right. Go find someone with deep pockets and does not want to be part of the day to day operation. You may only end up with a percentage of ownership, but it is a start. From there who knows maybe one day you will be the financier and give a young guy a start in the bar business yourself. Good Luck!
87grandnat
Active Member
- Joined
- Oct 14, 2003
I dont really know if 250k would be enuff, I have got to plan everything out to be sure. And the reason it closed in the first place was the were caught repeatdly selling alcohol to minors or people with no license, it was a manager problem not following up on waitresses to make sure they were carding
I think it would be a faster process and more feasable (sp?) to set a lower goal to get started.
Joshua
I think it would be a faster process and more feasable (sp?) to set a lower goal to get started.
Joshua
V8Assassin
100mi away ready 2 strike
- Joined
- Jun 6, 2007
Josh,
Don't give up on your dream, if this is what you want go after it. Figure it out, make it work. Go after it like your life depends on it. That is what owning your own business is all about.
Network, try to find out who is investing around there. There has been alot of natural gas exploration in the barnett shale around dallas and fort worth. Could be creating opportunities for finding capital.
chopped39
Well-Known Member
- Joined
- Aug 30, 2004
First off are you married? If you are she will get half of your half anyways. Send her in for a government loan. It sounds messed up but minority will get the loan before you. I know there is going to be people bitchin about this but it is a fact I know three guys that tried to get gov loans for shops and a restaurant.Guess what. declined. One month later the same guys mom applied for a gov loan for the resturant. She got it
.Then the other two guys had their wives apply for loans. they both got it. That is some crazy bs. But that is the way it goes. If you need to speak to an accountant let me know .My brother-in-law is one. He lives in indiana but he goes to texas a couple times a month for one of his clients. Trust me when i tell you he is real good with numbers. A bar is a great idea that everybody loves to go to.But the you cant believe the legal mess you are going to have.First you have to see if there is a licence still available. A lot of bars you go into have some cool decor.I was dumb when i asked about how much a couple of guys put in a bar in chicago.People here probably heard of it The Drink it is gone now.They had 3,500,000 in the decor and outside paint I almost crapped myself. So do your homework and sell your house and buick because your new home will be that bar good luck
.Then the other two guys had their wives apply for loans. they both got it. That is some crazy bs. But that is the way it goes. If you need to speak to an accountant let me know .My brother-in-law is one. He lives in indiana but he goes to texas a couple times a month for one of his clients. Trust me when i tell you he is real good with numbers. A bar is a great idea that everybody loves to go to.But the you cant believe the legal mess you are going to have.First you have to see if there is a licence still available. A lot of bars you go into have some cool decor.I was dumb when i asked about how much a couple of guys put in a bar in chicago.People here probably heard of it The Drink it is gone now.They had 3,500,000 in the decor and outside paint I almost crapped myself. So do your homework and sell your house and buick because your new home will be that bar good luck87grandnat
Active Member
- Joined
- Oct 14, 2003
Thanks V8Assassin and chopped39! I appreciate the words of encouragment and wisdom! I dont have a wife or anything so I dont have that going for me. I am going to get together with my buddy when I get home next time (headed to New Mexico in the morning) and we are going to start working on the financial planning and see what we can do from there.
Joshua
Joshua
So $16K does not include the Liquor License, then where will you get one and how much will it cost. If the yearly rental is $192K, $250K is nowhere near enough. Whomever is going to lease to you is going to dig deep into your finances to make sure you can pay the monthly nut.
Not to drown anybodies dream, but I think you are shooting a little too high, and need to shoot less for the stars. No proven track record, no financial history, no personal equity. It may not even be a long shot, but a no shot. Sorry, just my honest objective opinion based on being a business owner for 27 years.
Not to drown anybodies dream, but I think you are shooting a little too high, and need to shoot less for the stars. No proven track record, no financial history, no personal equity. It may not even be a long shot, but a no shot. Sorry, just my honest objective opinion based on being a business owner for 27 years.
