Dan Gheorghiu's Weblog

Context

To open a bar is one of the most common business ideas.

It is a usual dream because it promises you to have a very good social life, to have a lot of friends, to feel important, to gain a lot of money, to host important people, to be warmly and specially greeted by the waiters in front of the people in your group.

Still, only a few open a bar, due to the high cost.

The profit for a bar is like 300% and the taxes are not paid for every bottle.

Solution

The solution is to have only 1% of a bar with other 99 partners who have the same 1%

Strengths	Weakness
Less money invested 100 owners are already clients, each of them brings his friends when people see a full bar they prefer to be overcrowded than to go to an empty one people vote for all important parameters: location, name, menu, music, design	Less profit, you cannot make very big money
Opportunity	Threats
If one co-sharing bar works, it can be extended to a network, so co-owners can change the bar Can be created an investment fund which manages all these bars, so the final risk is diminish more	People don’t

Actors

Initiator (me):

• Creates the project, finds the potential solutions for:
• Location
• Bar design
• Menu, pre-contracts with beer suppliers
• Music, bartenders, managers, waitresses
• Finds co-partners, presents the concept
• Organize meetings and the vote
• Handles administrative issues
• Does the interface with the executive people

Co-partner:

• Votes for a bar setting (all bar parameters)
• Invests money in the project
• Goes usually to the bar
• Invites friends to the bar, promotes the bar

Executive people:

• Bartender
• Manager
• Waiter

Plan

1. speak with a marketing person (1 day,0 $)
2. create a facebook account with the description of the concept(1 day, 0$)
3. find locations, design, music(2 days,0$)
4. find co-partners: go in bars and , make brief presentation, business card with link to the facebook account(40 days- see calculus below,120$)
5. check the feedback: the rate of : very interested, interested, not interested to estimate of overall success (1 day,0$)
6. organize meeting, vote and investment ( 3 meetings = 3 days,0$ )
7. find executors ( 2 days,20$ - on job site)
8. open the bar(20 days)

Total time cost: 70 days

Total money cost: 140$

4. Find co-partners time cost:

Suppose that 10% of interviewed people are interested => I need 1000 people

I don’t speak to a single person, but a group, so it is easier to convince a group, than a single person => on average should be 3 persons on a group => I need only 333 interviews

A presentation takes maximum 15 minutes, than the effect is lost => total effort = 80 hours

I can handle 2 hours => 40 days

1 beer at the bar 3$=> 120$

6. Organize meeting -> rent a pub, sell tickets, it’s a simulation for the co-sharing bar

cost: 0$

Business Data

To open a share company, minimum capital is 65.000 Euros

Profit tax: 38%

Dividend tax: 25%

Location cost: 12E / mp / month

Salary costs:

1 manager = 1500 => 3000E gross

1 bartender = 1500 => 3000E gross

1 waiter = 1200 => 2400E gross

Total monthly cost estimation = 10.000

Beer cost = 0.5E

Sell beer price = 3.8E => for break even 3.000 beers must be sold => 100 beers / day => 50 clients

If the co-partners come twice a week => 2* 100 co-partners = 200 clients / 7 = 30 clients / day

If each co-partner bring one friend => 60 clients and break-even is already hit

Condition to select a co-partner for break-even

In the first 6 months each co-partner comes twice a week with a friend and drinks 2 beers.

Labels: businessidea