Pub ownership is the dream of many entrepreneurial beer fans in the U.K. There may be many reasons you want to start your own pub business. Maybe you’ve visited your fair share of them and found something to be lacking that you feel your pub could provide. Or maybe you just want the freedom of running your own business and working for yourself instead of for someone else. Whatever your reason, creating a business plan for a pub requires consideration that goes beyond that of other business plans.
The first thing you will need to know before you begin crafting your business plan is which business model you will be using. In the UK, the majority of pubs are owned by a pub company, and not the individual. Therefore, the most popular option is to run leasehold, as this is the most cost-effective route, allowing you to purchase and sell the business, but not the property.
The pub is rented from the company, and you negotiate rent with the landlord, but trade as a sole trader. All of the pub profits are yours unless you also have game machines. In that case, any profit made from these will likely be split with the pub company.
Tied or Free of Tied?
The leasehold itself will be offered on either a tied or free of tied basis. If a tied leasehold, you will have to purchase a significant portion of the beverages you sell from the brewery, which may not be the lowest cost option. The tied option is the lowest priced of the two, but can result in less gross profit.
The free of tied option will allow you the same independence afforded to a freehold and without the cost of doing so. However, it does incur much more of a cost than its tied counterpart.
Once you’ve determined your business and lease models, you can continue with the other essential elements, which are your executive summary, personal profile, information about your pub and its patrons, and the location of the pub.
This is where you will convince the reader that you are the best person to run your pub business. Therefore, your executive summary needs to pique the interest of the reader and inspire them to read the rest of your plan.
Crafting an impactful executive summary will require you to explain your plans for making your business a success. This means adding facts and key figures including financial projections. You will also need to demonstrate your customer, pub and area knowledge.
What makes you the right person for the job of pub owner? This is where you will outline your experience, skills, knowledge and qualifications. Your CV can help you find the qualifications and experience you need to effectively run your pub business.
You must include plenty of quality research with regard to the pub’s facilities, customers, history, and identity and its benefits and disadvantages. This can include all of the rooms in the pub, as well as details about your customers, the pub’s rental and turnover history, and its current atmosphere. When detailing its pros and cons, remember to also detail how you will overcome weaknesses and capitalise on strengths.
Finally, you’ll need to know the area where your pub is located. What kinds of housing are in the area? Are they owned, rented or a combination of both? You’ll also need to know the demographics of the area, as well as what other businesses are located nearby. Any competing pubs should also be listed here, along with their target customers.
Any plans for road building, new housing and anything else that may impact your pub should be included in this section of your business plan.
Once you have this information, you can begin crafting an impressive business plan for your pub that will attract the right kind of attention.