Dose anyone know anything about opening a bar?

Question

A friend of mine is wanting me to invest in his new bar, but I want to make sure I ask all the right questions to ensure as much as possible that I am not just completely throwing away my money. PLease answer my question if you have any insite. Thanks, in advance.

Answer 1

1. How's he going to get the liquor license.

2. How much capital will he need to open. How much will a year's expenses be. Where's he getting the money. What kind of capital structure / what kind of investor will you be (partner, limited partner, note holder, shareholder?)

3. How much experience does he have at opening/running a bar.

4. What kind of bar, what's the competition, what's the targeted demographic, how will be do the marketing (how will be be able to draw that demographic)?

Then you can ask the ancillary stuff... do you have a lease, will it have a kitchen, how much spending on renovating space, etc.

Answer 2

what is the theme of the bar going to be? what kind of bar is it going to be? food? dancing? live music? is it going to be trendy? trendy bars normally don't last that long.  who will be running it? do they have experience? have they been successful at a previous establishment?  

Answer 3

What type of competition is close by? ... What is your friend's track record in other bars that they've had?  If they haven't owned another bar, what is their experience?  ... You need to be most concerned about your friend's ability to run a successful bar!  If the bar is already opened, ask to have your accountant look at the books for the previous months......And, be sure you have an attorney look at the agreement, before you sign it!  In fact, let your attorney ask the questions!