What To Look For When Buying An Existing Bar or Club

Owning your own business is a huge endeavor and often, it is a very satisfying experience. Those who wish to work for themselves often have three choices. There are freelance careers, but they are not right for everyone. The other two options are starting a business from the ground up, or to buy one that is already in existence. The great thing about buying a business that is already up and running is that a lot of the start up is done, and taking over should be a bit less complex. However, anyone looking to buy an existing bar or club should know what to look for before they make the final decision to buy.

When buying a business such as a bar or club, you want to have minimal problems when you take over. Having a lot of down time between the final sale and opening under the new owner is never a good idea if the current customer base is to stay interested. When a major renovation is needed, that should not be something that will come as a surprise to the new owner. There are always changes a new owner makes, but they should be aware of all issues before the purchase is final.

Before approaching the owner about a possible sale, anyone interested in buying a bar or a club should visit unannounced during normal business hours. Not all bars and clubs have the same clientele. A new owner should know who they can expect in their establishment each night. They should see how things run, and look around for any obvious problems. Are the bathrooms adequate, working, and clean? Is the furniture in good shape or even something worth keeping? Do doors look secure and are there enough fire exits? You can learn a lot by just visiting for a few hours.

Once the property is shown, there are other things that should be addressed. One of the first things to find out is why the owner is selling. If they are retiring, moving, or just plain tired of the late night hours, there probably isn’t much to think about in that regard. However, if there is a problem with crime or neighboring businesses, that should be taken into serious consideration. Are they losing money? If so, you should think about that carefully as well. Do you want something that is instant income or are you up for the challenge of turning a dying business around?

Some other important considerations to make might concern entertainment. Are any pool tables or games included? Are they rented? Is there adequate and safe space for live performance? Without proper stage place, most bands are cramped, and they have to deal with crowds stepping on expensive equipment and spilling beer everywhere. Most bands will not come back once they have a bad experience. If you want a DJ, is there a good place to have them? Are the bathrooms big enough and is there enough overall space for what you envision?

Obviously, you’ll want to make sure you use a respected attorney in the buying process and have a solid review of the contact, understanding all the details.  But in addition, take time to look around and have a trusted contractor or building inspector go over every aspect of the building including foundation, electrical wiring, plumbing, and structural integrity. Don’t forget to think about parking and location. It’s a lot to take in and might take some time, but making the right choice when buying a bar or a club is essential for success. Unexpected and costly surprises can delay opening, and might even sink the idea entirely.