Many people dream of running a pub, as they have a romantic idea that it is an easy job that you can coast along doing. However, there is much more that goes into running a pub than many people realise, and you will need to consider many factors before jumping in with both feet. You will need to research what is involved in running a public house to ensure that you have the necessary skills to make it a success. You can see some of the many factors you must consider below to help you get started and see if running a pub is the career for you.
The Difference Between Leasing & Owning
One of the first things you must consider is whether to lease a pub or purchase one outright. When you look at pubs for rent, you are renting the building and often all the fixtures and fittings, including equipment and furniture from the brewery or company that owns the pub. You are often tied to purchasing your supplies from them as well, which significantly limits your flexibility. However, you can benefit from lower start-up costs, an established supply chain, and ongoing support to help you run your business effectively.
Before signing anything, ensure that you carefully review the contract to understand the obligations you are taking on and that you fully comprehend them, including how you can exit the lease. When you purchase a pub outright, you will not receive the same level of support as when you lease, and you must also invest significantly more money to open your establishment.
Location Is Critical
The location of any potential pub you are considering leasing is also a vital factor to consider, as it can significantly impact whether your venture will be successful or not. Having a quaint pub in the heart of the countryside may bring in a brisk trade during the summer, but it may struggle during the quieter months of autumn and winter. You can also consider an urban local pub that has plenty of regulars and after-work patrons that can give you steady trade throughout the year. When evaluating different pubs, it is recommended to visit them multiple times at various times of day and night, as well as on different days of the week, to gain a better understanding of the business and determine its viability for you.
A Head For Numbers
You are also going to need a head for numbers when running a pub to ensure that you can make a reasonable profit from your endeavours. Before signing for any pub, you will want to put together a strong financial plan, which includes working out expected costs, including:
- Rent
- Utilities
- Stock
- Wages
- Insurance
- Maintenance
You will want to ask to see the books of any pub you are considering taking over, so that you can examine them carefully and assess its profitability. It can also be worth having a professional accountant look at these for you, who may also be able to give you additional insight into the financial health of the pub. You must ensure that you have decent margins to make a profit; otherwise, you could find that you fail at running a pub and potentially lose a lot of money.
Running a pub can be a fantastic career and one that you really enjoy, but you will want to do plenty of research before diving into it. Ensure you conduct due diligence when evaluating potential pubs, whether you are looking to purchase or lease, as it can help you make the best decision and achieve success in your new venture.