The idea of one day opening your own small bar may be a dream, but the reality is long hours, government regulations and a lot of planning. In this article, we’ll tell you how you can start your own small bar.
Table of Contents
1. Pick the right site
Finding the right site is an exciting first step for any small bar owner. It’s a good idea to establish a relationship with a real estate agent in your area. Sign up to as many real estate emailing lists that you can and visit as many sites as possible. The site you choose is ultimately where you will be working. It’ll determine the type of customer your bar will attract and the level of foot traffic passing by.
If you can, try to look at an existing bar that has recently closed down. Securing an already fitted out bar is invaluable and will save you and your partners plenty of money in the long run. Location is also important here, as you’ll want to be in an area where people are likely to go out to have a drink, or near a business hub to attract more customers.
2. Understand the rules
This is one of the biggest hurdles when starting your own small bar. It is important that you understand the rules and regulations that need to be followed. Generally, these are:
Community Impact Statement and Development Application
Firstly, before you consider applying for small bar license it is important to contact your local council to see if you need a Community Impact Statement (CIS). A Community Impact Statement allows you to notify all the relevant stakeholders in your area that you plan on opening your small bar within their local region. It allows them to comment and lets the council gauge the response to your proposal.
Alongside this, you’ll need to lodge a development application to your local council as well. This is so they can approve any changes you wish to make to the site you’ve chosen. Things such as the social impact your bar will bring to the area is considered in this application. You can apply for a small bar license once this development application has been granted in accordance with the legislation. The development application will also determine the trading hours you are allowed to operate between. Typically under the Liquor Act 2007 (NSW), it is 12:00am – 2:00am for a small bar.
Small bar license
A small bar license allows you to operate a bar which holds a maximum of 120 people. This excludes gaming machines and take-away alcohol. Applying for a small bar license isn’t an easy or short process and does deter a lot of people. When you have finished your community impact statement and development application, you’ll need to have the following information available for your license application.
- A floor plan clearly showing the proposed boundaries for the licensed area
- If applicable, a copy of your local council development approval or consent
- Details of the premises owner
- Contact details for you or a person authorised to submit your application
Whether you are applying as an organisation or as an individual for your small bar license changes what information you need for your application.
Applying as an organisation
If you are applying as an organisation you’ll need:
- ABN, ACN or Y/INC
- The names and birthdays of all Directors and Officeholders
- A current ASIC extract
- A complete appointment of management notice
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Applying as an individual
If you are applying as an individual make sure to have:
- Evidence of your Responsible Service of Alcohol (RSA) qualifications, including your licensee training
- A current national police certificate issued within the last three months
- 3 identity documents you used to apply for the national police certificate
Getting in touch with a business lawyer initially is a great way to navigate through this process. The right guidance at the start of your business is a great way to ensure you get off on the right track.
3. Focus on a concept – don’t try to do everything
Small bars are often themed around a concept. This doesn’t mean opening a Tiki bar in the middle of the CBD, but formulating your cocktail menu around a certain base of alcohol such as whiskey or a gin, is a great way to present a specialised menu for your customers. On the other hand the neighbourhood bar concept which, includes everyone’s favourites could be more appropriate for your region if you find yourself in a more suburban setting.
Knowing your concept will also allow you to hire the right staff. Whether you need experienced cocktail makers or just basic bar-tending experience behind your bar, a clear concept makes for clear decisions in the future. Using an employment contract is crucial in ensuring you and your staff adhere to agreed standards and begin with a professional employer and employee relationship from the get go.
Picking a name and most importantly a logo will help define your bar within the small bar scene. Protecting this is vital, so registering your business name and trademarking your logo is something every bar owner will need to do.
Final thoughts
Once you get through all the government and council rules, opening a small bar is an exciting way to get into the hospitality industry. The small bar scene is growing within Sydney, and people are always looking for the next new place to unwind after work or meet friends.
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