A bar a place where alcoholic drinks can be bought and drunk and sometimes food served. It a cool-off spot where people relax after a busy or boring day, either briefly or for an extended period of time.
Bar lounge business is very lucrative in Nigeria. Why? The reason is unrelated to the appetitive nature of Nigerians. Capitalizing on this opens a beautiful door to making money for anyone taking up this business idea. Interestingly, it can be run with low capital with anticipated voluminous profits.
This article is in three parts. First, I review the profitability analysis of the business. Secondly, I discuss the market demand analysis of the business.
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Finally, I show you the steps to start and succeed in bar lounge business. Now, let’s start with a review the profitability analysis of in bar lounge business.
Profitability Analysis For Bar Lounge Business in Nigeria
A sneak peek into the profitability potentials of bar lounge business reveals the following:
For a Common Bar Lounge business;
A carton of bear contains which about 12 or 24 bottles sales for N2, 300 or N4,600 at cost price. Selling each bottle for N200 or N250 gives roughly 250 X 12 = N3, 000.
So, the profit per carton is thus N700. If you sell say 10 cartons is sold a day, you will make a profits of #7, 000. This figure multiplied by 24 days (excluding Sundays) give N168, 000 per month.
For the expensive bar lounges, we have that a carton of drink goes for the same N2, 300 at cost price. This can be sole for say N500 per bottle.
So, N500 X 12 = N6000. So, the gain there is (N6000 – N2300 = N3700) Now selling 10 cartons gives you N37, 000. Imagine you make this daily for 30 days!
Market Structure/Demand Analysis:
Is there a market for bar lounge business in Nigeria? Yes, there is. Nigerians typically like to club and party and this happens on a daily basis.
However, the rate of clubbing and partying increases in the weekends from Friday night. That is when people take their friends and loved ones out to club and party.
So, if you go into this business, you will not fail because of the ever-increasing appetitive and entertainment-laden nature of Nigerians.
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What You Need To Start Bar lounge business in Nigeria:
1. Knowledge, Training & Skill Needed
You don’t need a certificate for this or much training. All you need to first serve as in clubs and bars and see how things are done there. After some time, you can simply open your own bar lounge and start accepting customers
2. A Good Business Plan
It is good to get a Bar lounge business plan. This will serve as a documented blueprint of the business from start to growth. If you cannot develop one, you may contact us. We handle that for a token while you take care of other things.
Basically, a Bar lounge business plan will show:
1. How you will run the business
2. Where how to raise capital
3. Where and how to market your business to target customers
4. Profitability approaches
3. A Well-Done Feasibility Study/Research
Bar lounge business is highly competitive. So, you need to research well before you kick start. Do an extensive research and ask questions on what new innovations customers will need in a bar lounge.
With this idea, launch out with an innovative model to meet customers’ needs. Ask the experts how much is required for a start, where to buy such products at a cheaper rate. Look for what people are not doing but will help and include in your business.
4. Startup Finance
Without including money for the bar space, you need around N800, 000 to get the basic equipment and another N200, 000 to handle miscellaneous.
Some of the basic equipment you will need includes a refrigerator, a generator, sound systems, lighting systems, drinks etc.
You will also need sales girls, waiters or bar attendants, at least two (2). If we are to include renting/space we will be talking about N1.5m. However, to run an expensive, elegant type of bar lounge in Nigeria you will need around #3,000,000 to setup.
5. Appropriate Licenses And Permits
You may need a license from the government to run a Bar lounge in Nigeria. Since you are dealing with alcoholics drinks, you must be a registered, licensed operator. Register and get permits with the necessary authorities of the government to operate without any hassles.
Some of the tools you need for this business include:
1. Standard refrigerators – at least 2.
2. Chairs, preferably cushion chairs (or Strong plastic chairs )
3. Plastic, wooden or glass tables
4. Air conditions. This will be used for cooling the house and sending off heat.
5. Games e.g. snooker, squash, ludo etc.
6. TV sets connected to pay TV channels. This will be used to showcase live and previous football matches and other sports to customers while at the bar.
7. Standing fans
8. Lighting sets
9. Good sound systems
10. Live band and DJ Services
7. A Nice Business Location
Locate the business in a busy environment, preferably close to companies, factories or schools. After work or during a break, people will see your place as a relaxing spot to cool off with drinks.
Bar Lounge Management Practices
(8) Proper Staffing & Business Advisers
You may get a staff for a start. But when the business expands, plan on getting more
It is good that you get a mentor and adviser to properly guided you in this business. This must be someone with years’ field experience in this business. He/she must have run this business over time and is ready to open up to you on what (or what not) to do.
9. Marketing and Advertising Strategies:
You may want to run Radio/TV jingles to get inform the larger society about your new business. This kind of business does not need much of a signpost to direct people.
Those who are interested in it know just how to locate your friends. A friend will tell a friend and the network grows like that naturally – that is if you treat your customers well. Else, the reverse becomes the case. A good customer relation equals increased influx flow of customers.
10. Recommended Productivity/Sustainability Tips
Productivity here lies in the level of innovation you introduce into the business. Bring in what others are not doing but which is much demanded by your clients. Listen to customers’ complaints and recommendations and work towards improving your business every day.
Summary and Conclusion
Bar lounge business is indeed profitable. With about N800,000 you can start this business and watch it grow. Now, go up and preview this article again. If there is something you still need clarification on, kindly send me your questions in the comments box.
Thank you. Get other hot business tips like this here
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