SETTING UP A BAR
Introduction
This business idea is for selling juice and alcoholic products. A bar is a place where drinks such as beers, soft drinks and some eats are offered for sale and they can be set up in any place especially trading centers which gather many people. Their market structure is wide because it’s throughout the year, but its peak is during public holidays and festive seasons hence increasing on their demand. The business idea is premised on selling of 5 crates of beers, 5 crates of soft drinks, 4 bottles of spirits and 5 boxes of water per day. The revenue potential is estimated at US$410 per day translating into US$127,920 per year with a sales margin of 10% and total investment requirement is US$122,359 for the first year of project operation.
Technology and process Description
A bar has no complicated technology involved because it involves a working table, refrigerator, waiters and waitresses for serving the customers. Its process description involves purchasing crates of beers, crates of soft drinks and boxes of water in large quantities and selling them to customers in small quantities for immediate consumption.
Market Analysis
The market for this project is throughout the year mainly in busy trading centers, but its peak is during public holidays and festive seasons.
Scale of Investment, Capital Investment
Requirements and Equipment
The project is operated locally on
small scale. Capital Investment
and requirement includes buying a counter refrigerator, chairs,
tables, glasses and shelves.
Capital Investment Requirements in US$
|
Item |
Units |
Qty |
Unit Cost |
Amount |
|
Refrigerators |
No |
2 |
250 |
500 |
|
Gas stove |
No |
2 |
300 |
600 |
|
Source pans |
No |
10 |
15 |
150 |
|
Plates |
No |
50 |
1 |
50 |
|
Working table(Counter) |
Unit |
1 |
200 |
200 |
|
Chairs |
No |
50 |
125 |
6,250 |
|
Serving tables |
No |
13 |
40 |
520 |
|
Glasses |
No |
100 |
1.5 |
150 |
|
Shelves |
Unit |
1 |
400 |
400 |
|
Air Conditioners (Fans) |
No |
4 |
35 |
140 |
|
Music System |
Set |
1 |
300 |
300 |
|
Total |
9,260 |
Project Operation and Operating Costs
1. Production costs assumed are for 312 days per year
2. Depreciation (fixed asset write off) assumes _4_ years life of assets written off at 25% per year for all assets.
3. Direct Costs include supplies of products (stock)
4. A month for sale is assumed to have 26 days.
Direct Products (Stock) and Costs in US$
|
Cost Item |
Units |
Unit |
Qty/ |
cost/ |
cost/ |
cost/ |
|
Direct Costs |
||||||
|
Beers |
Crate |
18.75 |
5 |
93.75 |
2,438 |
29,250 |
|
Spirits |
No |
20 |
4 |
80 |
2,080 |
24,960 |
|
Soft drinks |
Crate |
6 |
5 |
30 |
780 |
9,360 |
|
Water |
Box |
5 |
5 |
25 |
650 |
7,800 |
|
Eats(snacks) |
100 |
100 |
2,600 |
31,200 |
||
|
Serviettes |
Packet |
0.75 |
1 |
1 |
26 |
312 |
|
Silver pack |
No |
0.15 |
15 |
2.25 |
59 |
702 |
|
Sub-total |
135 |
329.75 |
8,632 |
103,584 |
||
|
General Costs(Overheads) |
||||||
|
Rent |
150 |
1,800 |
||||
|
Labour |
350 |
4,200 |
||||
|
Utilities(Power & water) |
50 |
600 |
||||
|
Miscellaneous Costs |
50 |
600 |
||||
|
Depreciation (Asset write off)Exp |
193 |
2,315 |
||||
|
Sub-total |
793 |
9,515 |
||||
|
Total Operating Costs |
9,425 |
113,099 |
Project Product Costs and Price Structure in US$
|
Item |
Qty/d |
Qty/yr |
Unit |
Cost/yr |
Unit |
T/rev |
|
Beers |
5 |
1,560 |
18.75 |
39,000 |
25 |
125 |
|
Spirits |
4 |
1,248 |
17.5 |
31,200 |
25 |
100 |
|
Soda |
5 |
1,560 |
6 |
13,104 |
8.4 |
42 |
|
Water |
5 |
1,560 |
4.8 |
9,360 |
6 |
30 |
|
snacks |
50 |
15,600 |
1.5 |
35,100 |
2.25 |
113 |
|
Total Revenue per day |
410 |
Profitability Analysis in US$
|
Item |
Per |
Per |
Per Yr |
|
Revenue |
410 |
10,647 |
127,764 |
|
Less: Production and Operating Costs |
362 |
9,425 |
113,099 |
|
Profit |
47 |
1,222 |
14,665 |