Wednesday, May 19, 2010

Buying an Atlanta Bar or Club – Reasons to Buy Instead of Build

Run the bar of your dreams tomorrow or start from the bottom and wait six months.

There is a surge in the numbers of Atlanta buyers that are seeking small businesses which offer all things “foodie” which is fueling the perfect explosion of Atlanta bar or club purchases. Many Atlanta buyers are choosing this option over starting a bar or pub from scratch and then waiting months to open which makes it very shaky proposition. Atlanta buyers want results right away and they are seeking Atlanta bars or clubs that have established a track record for success.

The facts show that many new Atlanta bars and clubs fail as a result of depleting the capital before the project is complete and six out of ten new bars fail by the end of the first three years in business. Additionally, most startup bars and pubs fail to plan for marketing expenses and costs incurred to help sustain the business during the first few years until it finally operates at a profit. These statistics certainly do not point in favor of aspiring bar owners that wish to build their own business from the bottom up.

When it comes to the Atlanta bar and pub market the saying, “if you build it, they will come” certainly does not apply to this market any more than it does for baseball. There is no formula for instant success with a startup bar in Atlanta so buying an existing bar makes perfect sense.

If you want to ensure your path to success as a bar owner, buy an established bar or pub in Atlanta. If you are an accomplished bartender but amateur contractor, deciding to tackle a bar project that requires you to build it from scratch means you will have a long road ahead of you. If you cannot use building tools as well as you can serve up a mean martini your project will be slow going and take a lot longer to accomplish.

It is quite common for buyers to try and save money by building their bar from the bottom up. We have many years of experience selling Atlanta bars and pubs and we come across this all the time. As the project unfolds the costs go up due to upgraded ideas that involve more costly additions and the result is soaring construction costs that exceed the amount of the original capital planned for the project. By purchasing an established pub or bar it is much cheaper to add a new space than to start your bar from scratch.

If you are business minded you know that time is money so buying an existing bar can have you open for business tomorrow. If you opt to build your bar or pub from scratch you may be waiting as long as nine months for the permits, construction, and finally the opening, when you could be serving your first cold beer tomorrow with a second generation business. Although the Atlanta liquor license does not transfer it is still easier than obtaining a liquor license on a brand new bar.

Regardless of whether or not the bar is struggling when you buy it, as long as it is established it will have a base of business that will provide you with a place to start. If your bar is built from scratch you are also starting from scratch with your customer base to build the initial sales dollar and then proceed from there with each dollar incrementally. Your first sales volume of $100,000 is always the most difficult milestone to achieve. With an established bar or pub you can take the existing sales to a new level with a marketing plan and other changes that will contribute to sales growth. This is a lot easier when compared to a pub or bar that you start from scratch. Regardless of your experience as a mix master and the number of people that you know, starting from zero with your sales is a very daunting task.

This is why you should find a professional Atlanta restaurant broker to help you find an established bar or pub that will allow you to hit the ground running as a new bar owner.


To learn more about buying or leasing Atlanta restaurants CLICK HERE

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