How to buy out a bar?

[phas3]

well I'm 21 years old and in the Marine Corps, in september next year I will be getting out and starting college...a little late but I really want a degree. And I was thinking Business Management or somewhere along the lines of business as a major. One of my goals is to run my own bar. Now there is a place I would like my bar to be located and if you live in Los Angeles you would know the Hermosa Pier has one of the best local bars around specially in the Pier Area. It consist of about 6-7 bars right across from each other and every night these bars are hopping.

Now I was thinking of buying one of these bars out when I have enough money or can get a loan, but I don't know how to start off. I'm looking for some input on strategies etc..on buying out one of these bars. Also there is a couple restaurants in the area inside the pier and maybe I can buy those out to and turn it into a Bar/Club. Now at this moment I know nothing about business but will for sure in the future and I was wondering if anyone can give me some pointers on how I should go about this.

Now take into consideration that this will probably be 3-5 years in the future and maybe even longer but I have made it one of my goals to own a bar/club particularly in this part of the the town or maybe somewhere else where it's booming in california. So any input opinions would help

 

[wvuwhat]

Take an entrepreneurship class or multiple in college. I just got done with one that was solely proposing a business plan and making it come to fruition throughout the semester. It's not the real thing, but you go through the motions and it was pretty interesting. Loans are going to be a hard thing to get now...and you really have to wow them with your proposal. Any rich relatives/friends?

 

[newtonapp]

Maybe it is different in LA, but I know in NYC bars have a really high turnover.

My suggestion would be to work at a bar and learn the business in and out. I got my management degree and while it taught me a lot about running a business it is by no means enough to run and own one. Experience and real know-how is your golden ticket.

For example, anyone can learn how to write a business plan and file for a loan... and they do, which is why 99% of them fail so you must be in that 1% who are different.

On the bright side, the economy isn't doing so well and there are only three business models that do very well in a declining economy:

1. Alcohol
2. Cigarettes
3. Make-up

Think about how you can leverage that.

My $0.02.

 

[descartes]

Maybe it is different in LA, but I know in NYC bars have a really high turnover.

My suggestion would be to work at a bar and learn the business in and out. I got my management degree and while it taught me a lot about running a business it is by no means enough to run and own one. Experience and real know-how is your golden ticket.

For example, anyone can learn how to write a business plan and file for a loan... and they do, which is why 99% of them fail so you must be in that 1% who are different.

On the bright side, the economy isn't doing so well and there are only three business models that do very well in a declining economy:

1. Alcohol
2. Cigarettes
3. Make-up

Think about how you can leverage that.

My $0.02.

other two make sense but why make-up?

 

[CalBoy]

other two make sense but why make-up?

I'm guessing that people don't like to give up their sense of appearance, even if the budget is tight.

It might be recession-resistant as opposed to actually doing well in a recession.

OP, if you plan on opening a bar in what sounds like an expensive area (a popular pier), will you have the collateral to put down? Are the people who primarily frequent such spots in a state of shifting demos (ie, are they frequented more by one generation or is it constantly the 21-30 crowd)? Is the area one where people can bar hop easily (sounds like it)?

Most important of all: what are you going to do to differentiate yourself from the other bars?

Just some things to think about.