Opening a bar is a promising start-up idea. If you get the right location and right brands to cater to the locales, you can get a good clientele. Also, most of Melbourne’s Best Functions are incomplete without good quality liquor which would add to your prospects. However, it is a high-cost business to start and also needs a regular and proficient financial management for continuation and growth. You would initially need funding and resources to acquire liquor, establishing the bar, doing the interior, getting a mixologist on board, and getting the licensing and legal permissions. Once you have all the necessities in place you are good to go. Now you should try to manage your finances efficiently to take your business to the next level. The management has to be done on an everyday level and also on farsighted inflows and outflows. Here are some ways which can help you simplify the task and make it well-organized.
- Prepare for unexpected expenses
Every business is susceptible to unexpected expenses and crises. The bar business is no different. You should have to be prepared for any sudden fault in your refrigerator, spoiled perishables due to the mishandling in the walk-in refrigerator, or sour draft lines which you have to get replaced. Also, there could be expenses that you might not have anticipated. You should consider all these expenses while getting funding for the business. Include these in the initial costing.
- Working capital financing and payroll
Every business goes through its ups and downs. There could be lesser sales in some months like late autumn. However, you cannot keep your staff without pays. In such situations, you can get assistance from short-term working capital finances. These loans are easier to get with limited revenue and credits. These can help pay your staff salary in the lean business times. You should also keep in mind that these loans are expensive and should not be made a habit.
- Manage cash flow with a business checking account
A checking account is a basic requirement for every business. These accounts are easy to open and provide a range of facilities. You can choose the account that allows you to make frequent cash and credit card transactions of any sizes with no or minimal charges. This will simplify your cash flow and make it more secured organized.
- Emergency and seasonal cycles
The most efficient way to handle seasonal cycles and emergencies is to use credit lines. These are different from regular loans. Unlike regular loans you can withdraw the required amount as and when you need it. This helps in reducing the interest as it is only charged on the amount drawn and not on the whole capital.
- Using credit cards to pay latter for the supplies
Credit cards provide you amazing flexibility in your transactions. Often you purchase the business essential first and earn from it later. In such a case, not having enough cash can result in delay or even cancellation of purchase. Credit cards allow you to buy your supplies and pay the bills later.
- Hide and secure crisis funds in a business saving account
In addition to a checking account, you should also have a savings account. A savings account helps you to keep some savings for your business that can be used in crises. Also saving accounts is kept away from daily transactions as are an effective way of stashing your reserves.