How to Start a Bar Business: A Step-by-Step Guide

Nate Jones, CPCU, ARM, CLCS, AU
Aug 25
3 min read

Updated: Nov 16

Starting a bar business can be a rewarding and profitable venture—if done right. Whether you're dreaming of launching a cocktail bar, pub, nightclub, craft brewery, piano bar, or karaoke bar, understanding the steps and risks involved is crucial to success.

At Wexford Insurance, we specialize in helping bar owners protect their businesses with tailored bar insurance. From licensing to liability, we’re here to help you navigate the journey of starting a bar business confidently.

Step 1: Define Your Bar Concept

Start by choosing the type of bar you want to open. Your concept will influence your location, target audience, menu, and atmosphere.

Cocktail Bar: Upscale, mixology-focused
Pub: Casual, beer-heavy with food options
Nightclub: Music, dancing, late-night crowd
Craft Brewery: On-site brewing and tasting
Piano/Karaoke Bar: Entertainment-driven

Step 2: Create a Business Plan

A solid business plan outlines your goals, startup costs, revenue projections, staffing needs, and marketing strategy. It’s also essential for securing financing.

💡 Explore SBA’s guide to writing a business plan

Step 3: Choose a Location and Get Licensed

Location is everything. Look for high-traffic areas with your target demographic. You’ll also need to obtain:

Liquor license
Business license
Health and safety permits
Music and entertainment licenses (if applicable)

💡 Check your state’s liquor licensing requirements

Step 4: Purchase Equipment and Furnishings

Depending on your concept, you’ll need:

Bar counters and stools
Refrigeration and draft systems
POS systems
Glassware and utensils
Lighting and sound equipment

Step 5: Hire and Train Staff

Your bartenders, servers, and security staff are the face of your business. Invest in training for customer service, responsible alcohol service, and safety protocols.

Step 6: Market Your Bar

Use social media, local events, and promotions to build buzz. Consider hosting soft openings, themed nights, or live entertainment to attract customers.

Boost Your Bar’s Visibility with Contractor Back Office

Contractor Back Office helps bar owners establish a strong digital presence by handling website creation & SEO, phone calls, and social media management. These services make it easier to promote events, engage with patrons online, and build a trustworthy brand that attracts both regular customers and commercial partners.

Step 7: Protect Your Investment with Bar Insurance

Bars face unique risks—from liquor liability to property damage. At Wexford Insurance, we help bar owners find comprehensive coverage tailored to their business type. Essential policies include:

General Liability Insurance – Covers customer injuries and property damage
Workers’ Compensation Insurance – Covers employee injuries
Equipment Insurance – Protects refrigeration, sound systems, and more
General Auto Insurance – For delivery or transport vehicles
Commercial Property Insurance – Covers your bar’s physical location and assets

Final Thoughts

Starting a bar business takes planning, passion, and protection. From choosing your concept to securing commercial insurance, every step matters. With the right strategy and support, your bar can become a thriving part of the nightlife scene.

👉Contact Wexford Insurance today for specialized coverage for bar insurance. Let us help you safeguard your investment so you can focus on running a profitable bar.