How to Make It: Rules for Opening Your Own Bar

"There are easier ways to make money in the world, but this was the only business I could find where I'd get paid to drink beer."

Something you wish you had known then that you do now: I wish I'd know how important food would be in our concept. I'd have made sure we got a bigger, better kitchen, as we'll as a bigger space overall. On choosing a concept: I loved craft beer and when we started there was only one place to get it in Manhattan—D.B.A. I figured there was room for one more beer bar. Little did I know there was room for about 20 more. On choosing a space: Look for a corner in a busy neighborhood where you like the people, because you're going to be spending a lot of time with them. If you see too many strollers around, pick somewhere else. People with kids can't go out as much. On getting a liquor license: Get the best liquor lawyer you can find, make sure the community wants you there, and make sure you are nowhere near a church or school. On starting capital: The amount of capital you need depends on the size of your space, your concept, and where you're doing it. NYC is more expensive than Vermont. On breaking even: Breaking even depends on so many things. You hope to do it somewhere between year three and five. That's why you want a minimum of 10 years on your lease, and 15 if you can get it. On a day in the life of a bar owner: For bar owners, it's a day and night in the life. For the first seven years, I was at work at 7:30am and usually left around midnight, six days a week. On Sundays, I'd try to spend a little less time there. You spend time doing the accounting from the day before, fixing all the things that broke during the last shift, and restocking. Basically, you spend every day of your life getting ready to throw a party for 400-500 people you don't know. On weekends: Weekends don't break you in the bar business. Even idiots are busy on Fridays and Saturdays. It's Sun–Thurs that makes or breaks you. The guys who are busy then are the guys who last. On the best and worst parts of owning a bar: The best and worst parts are the people who come through your door. Visit the bar: Blind Tiger, 281 Bleecker St (212-462-4682, blindtigeralehouse.com)

"One of the great things about this industry is that there are so few rules. Everyone is making it up as they go along and adjusting to the realities of their bar."

Something you wish you had known then that you do now: A bar is the most appropriate example of Murphy's Law there is—If it can go wrong, it will. At least twice. Being prepared will save you money, anxiety, lots of grey hair, and a number of relationships. Also, a good relationship with your plumber doesn't hurt. On camaraderie in the hospitality business: Get to be friends with other owners, because more likely than not, any problem you come across someone else has dealt with before. Any intelligent owner shouldn't be threatened by such mentorship. A rising tide lifts all boats in a healthy restaurant and bar scene. On getting a liquor license: If you ever have the thought that you are clever enough to somehow bypass the bureaucratic juggernaut that comes with getting a liquor license, get rid of those thoughts immediately. You are not special, and the machine does not care. Don't play tricks or even entertain them. Get a really good lawyer and allocate the funds to seeing the process through above board. The last thing you want is to check the wrong box and be shut down. Trust us. It sucks. As a business owner you also need to get as involved as possible in your neighborhood—you should do this anyway to understand your clientele, but it becomes critical in the community board process which we have in NYC. If the community feels that the establishment that you are opening adds value to the neighborhood, no matter where it is, your opportunity for success in getting the license and continued operations grow exponentially. On starting capital: Starting out, make sure you over-capitalize. Most failures in our industry come from a thin pocketbook. If you think you'll need X on the high side to open, make it X plus 20% just to be sure. On a day in the life of a bar owner: A bar owner is always on-call. "Work hours" are not really a thing for us. The last thing we see every night is a status report from the manager (if we're not on site personally), and the first thing in the morning we review are the nightly reports. The rest of waking hours are dedicated to solving problems in one way or the other. There's always something to fix. We often say, "We wake up in the morning and we solve problems, that's our job." On the best and worst parts of owning a bar: Best: sitting at the bar, enjoying a drink, and watching every element of your vision work flawlessly without doing a thing. There's nothing more gratifying. Worst: lawyers. So many lawyers and so many billable hours. Words of wisdom: Get a great manager who knows what they are doing, is confident in managing people, and believes in your vision. If you aren't in perfect sync about everyone's responsibilities (including your own), you'll be at battle every day with misalignment of ethos, dealing with personal conflicts, and general frustration. Visit the bar: Death & Co., 433 E 6th St (212-388-0882, deathandcompany.com)

"Being in the black year one should be your one and only priority."

Something you wish you had known then that you do now: Recently, my husband and I were asked this question separately and yet we both had the same answer: POS (point-of-sale) system. It’s the one thing we should have put more time and energy towards when evaluating our options. We hate the system we have and will be switching to a far better one for our needs this summer. Although we’ll have to pay a couple of financial penalties because we’ll be breaking contracts, it’s necessary to switch. Lesson learned. On choosing a concept: The name pays homage to Shane's (my husband) childhood upbringing, as well as New York's pivotal role in the beer industry and the regional beers we serve. He’s like Rain Man when it comes to beer. We also support any small-batch or limited-release quality products and sustainable practices regardless of geography. On choosing a space: In NYC, finding a space can be a bit of a sport. We knew early on that we wanted our place to be near where we live (West Village) and spent about ten months looking before we found the perfect one. We didn’t get it because someone else was willing to pay above asking price. We love our East Village location but it wasn’t our first choice. Or second choice for that matter. But we are super happy with where we ended up. On getting a liquor license: Invest in a liquor lawyer who is 100% a shark. Ours is and we love him for it. He gave us great advice: "Be patient and don’t be greedy." Knowing how difficult it is to get a license in NYC, it can help to first apply for beer and wine only. After a year in business with a spotless record, we applied for the liquor license. Now we have both. It took almost eight months to receive our beer and wine license, and we submitted our application the day after we signed the lease. That is standard policy in NYC, as the license is tied to the place not the people. We opened 48 hours after receiving the license. On breaking even: Develop a conservative business plan and be mindful of what you spend money on, and you will break even within the first year. Being in the black year one should be your one and only priority. Words of wisdom: Cash flow is king! Spend as little as you possibly can on construction and/or interior design. That’s the biggest expense that often takes a place down within the first year, because the money is tied up in renovation projects which would have been better served to cover future rent or back-of-house salaries. Besides, you can always update the place after your first year of business. By then, you will really know what is and is not needed for the space. Visit the bar: Upstate Craft Beer & Oyster Bar, 95 1st Ave (917-408-3395, upstatenyc.com)

"Do your research, know your neighborhood, know your idea, and have fun."

Something you wish you had known then that you do now: How much construction we'd have to do and all the details you have to pay attention to. On choosing a space: We we're actually looking at spaces in Bushwick. We all live in the neighborhood and love it. The space just kinda fell in our laps. On getting a liquor license: Be diligent and patient, and have coffee always brewing. On a day in the life of a bar owner: Deal with the problems of the previous night, make sure everything is running smoothly, everything is stocked, bills and people are paid. Most importantly, take care of the space and the environment you want people to relax and have fun in. On weekends: I don't believe weekends make or break a bar. They might for some places. Weekends are just livelier. More problems and more fun. On the best and worst parts of owning a bar: The best part is having your own bar! Worst would be having to be responsible for your own bar. Visit the bar: Noorman's Kils, 609 Grand St, Brooklyn (347-384-2526, noormanskil.com)

"I'm 27, and I live in Brooklyn with my husband and dog. The dog is really the one in charge of everything."

Something you wish you had known then that you do now: I didn't know anything when I started out. I just started doing whatever I could and learning whatever I could. I guess I wish I had known it was okay not to know everything and I would have asked for help more often. On choosing a concept: I start with something I like. With Post Office, I was really into whiskey at the time (and still am) and I wanted to hoard as much as I could. Thus, Post Office became a whiskey bar, which got narrowed down to an American whiskey bar so that it would be easier to manage as a specialized selection. For OTB, I fell in love with these horse medallion wood inlays, and that guided the look of the place and gave it this vague horse-racing thing. The beverage program developed from the concept of a "winners circle," so there are always classics and our variation of the classics. Also, there are always a few sipping spirits highlighted so people can try new and interesting products. In my mind, it all relates and makes sense. On choosing a space: I choose a space based on its location. Especially if it is really close to my apartment. I spend a lot of time at the bar, so I like to be able to run home when needed. It is also important to know the neighborhood. I feel like I know the area I live in, so there is that perk. Rent is also very important. There is often a big difference between what I think a space is worth versus what the landlord and broker think it is worth. If we can find common ground, then it is a go. On getting a liquor license: Reach out to the neighbors around you. People get nervous about a bar opening up near their apartment. I think if you can comfort them with the knowledge that you aren't a scumbag who is going to make their lives miserable, then they will more likely work with you. That is also a crapshoot. People often have very strong opinions and negative connotations about bars around their living spaces. There is also a lot of paperwork, and a decent amount of waiting. And sometimes while you are too busy worrying about the department of buildings, or whether the hood guys are going to show up, or where the door latch for the walk-in fridge is, the liquor license just shows up! On starting capital: All of that depends on what kind of place you are opening. The type of beverage program defines the amount of equipment and initial inventory you need, as well as the scope of the food program, and how you want the space to look. Whatever it is that you estimate, take that and add like another 40%. It is always more than you think, want, and hope it will be. On breaking even: I think the standard is three years to make a profit. If you control your costs you can break even fairly quickly and work towards making the profit over the investment. The overall goal is to make sure people like [it]. Once that happens, then you can worry about the numbers. If nobody likes the place, then there will be no numbers to worry about. On a day in the life of a bar owner: Mine usually starts around 11am and ends around 4 or 5am. Especially in the beginning of a project—there is no such thing as time off. Once the place has its "bar legs" there is such a thing as time off, but it is always something you think about. I spend the days doing administrative stuff, fixing equipment (or calling someone to fix equipment), and then managing the actual operations at night. I drink a lot of coffee during the day and make friends at night. On weekends: Weekends are important, but I wouldn't say they make or break a bar. It really depends on the time of year and location of a place. Often you get a different clientele on the weekends that you hope will like the place and will want to come back on a weeknight. I think if you can make the rent on a weekend, then it's going to be alright. On the best and worst parts of owning a bar: Owning a bar is really satisfying. I like the creative parts, and I really enjoy hospitality and making sure people have a good time. I also like the chaos that comes with it. The worst part is that you fall off the grid for awhile. My friends joke that the easiest way to get a hold of me is to just come by the bar. You own your own business—it isn't a job, it is your life. Words of wisdom: Probably to just go for it. I see a lot people spend long periods of time just thinking about their dream place and talking about it. It is never, ever perfect. It is always difficult, and no amount of planning is going to protect you from bumps in the road. You just kind of have to take the plunge. Visit the bar: 188 Havemeyer St, Brooklyn (718-963-2574, postofficebk.com)

"Keep the business plan simple, have faith in it, and be prepared to do an incredible amount of work for very little in financial return at the outset."

Something you wish you had known then that you do now: Each bar or business has its own unique challenges and it's hard to anticipate what you will look back and judge what you wish you knew. On choosing a space: At both Little Branch and Silver Lining, the spaces kind of found us. At Little Branch, the tenant has been a regular customer at Milk and Honey and he referred us to the landlord. At Silver Lining, the landlord knew my partner Vito Dieterle as a jazz man. On starting capital: The amount of capital you need to open varies widely depending on how much work needs to be done in the space, the nature of that work, and how much time that work will take. On weekends: I think if you have trouble filling a bar on a Friday and Saturday night you may already be in trouble. The difference between scraping by and being a success is often measured by how well you manage to develop a regular clientele Sunday or Monday through Thursday. On a day in the life of a bar owner: The day in the life of an owner is not terribly glamorous and usually involves some plunging of toilets or other minor or major repairs. The best time is when you get to pause for a moment to look around and enjoy what you created. Words of wisdom: To somebody who is trying to open their own business without a bunch of capital, I would recommend finding a space they can easily convert that doesn't need a great deal of work. Keep the business plan simple, have faith in it, and be prepared to do an incredible amount of work for very little in return financially speaking at the outset. Visit the bar: 75 Murray St (212-513-1234, silverliningbar.com)

"Take out the calculator and figure out how much goddamn beer and pizza you are going to have to sell after that six-million dollar renovation and your $30,000 a month rent."

Something you wish you had known then that you do now: If I could go back and do it over, I would slow down and make absolutely sure of all of the operating agreement details—not skipping any steps just to get the thing started. Everyone has those moments when it feels like it will never happen. Skipping legal steps doesn't make it happen much faster, and bad things can happen if you do. On choosing a concept: Because the space was a basement, it was screaming to be a speakeasy type of place. We decided to ignore that scream and do something crazy with it. We started out with a Tiki concept but the more we looked into Tiki the more limiting it seemed. Guests expect to drink Zombies and eat Pu-Pu Platters and that's it. But a beach bar? A beach bar can do anything it wants as long as someone has done it on a beach—fish tacos, cold beer, fried clams. We even have a dish inspired by the beaches of the Black Sea in Russia. Sure, we have amazing frozen drinks and some of them come in coconuts with umbrellas, but we also use braised short rib instead of ground beef in our burgers. On choosing a space: Our current investors had [it] available and liked what we did with Mas(farmhouse). We had worked for them a long time ago. They actually approached us. On getting a liquor license: Go to your block association and community board meetings! In addition to the endless legal work for the SLA, you can meet with huge and unseen pressures from the community unless you actually go out there and meet them. Be honest about what you want to do. There will be cranky people at the meetings, but don't forget that there are ALWAYS cranky people at the meetings no matter what the discussion. When they shout that you will be destroying the neighborhood, it will make you look much more reasonable to the other people there. Remind them that you are opening a business that will employ people and be good for the community. On starting capital: A billion dollars? Jokes. I guess the point is there is no formula, but start with as much as you can. Nearly everyone starts with too little and the critical mistakes are: 1) Spending at the beginning like a maniac (treat the first dollars you spend as if they were your last because you are going to have to pay them back later); and 2) Not opening with operating capital. It doesn't have to be enough to operate your business with no revenue for three months, but I see so many people open and then go under almost instantly because they have no backup cash. A restaurant in my neighborhood recently opened for friends-and-family and a week of previews, and then closed before they even opened! On breaking even: 18 months is a good maximum. On a day in the life of a bar owner: It's actually pretty fun—wake up, meditate, have coffee. If I have private event contracts to write or emails to answer, I generally do it then. I like to check in with my business partner and manager after that over the phone and go over any issues that have arisen in service, staffing, etcetera, so that we may cover them before service that night. Head up to the space in the late afternoon to check that everything was closed properly the night before. Any maintenance stuff that I don't want to pay someone to do gets done at this point. Gene and I always have some little project going on, from building condiment trays to hanging bamboo somewhere. Customers love that all of our stuff is made by us—made by surfers. The staff arrives and we go over any problems and make sure to show them where they are doing a great job as well. If we have interviews for employment or press we usually do them in house after the bar is set up, but before customers arrive. Service is pretty busy and crazy. Though we have an excellent manager on the floor there is really no one who can look around the entire room and keep the rhythm of the night going or stop problems before they happen like my business partner and myself can do. We built the place ourselves and watched it get busier and busier through many incarnations of staff and management so we can really SEE the room, if that make sense. On weekends: The economics of a Friday and Saturday night absolutely do not break a bar. It's the Sundays, Mondays, and Tuesdays that do. From the guests point of view, if it's a weekend spot in their mind they will go sometimes, but they will also find another weekend spot and desert you. We have busy weekends, but I like for them to be not too busy. Making sure people can talk and kiss and get a drink without waiting 5 minutes for one beer is the goal. People will get sick of you fast if that happens. That's the nature of the New York weekend crowd. Give me solid weekdays over super-busy weekends any day! On the best and worst parts of owning a bar: The best part is kind of cheesy, but it's a true personal thing. I like welcoming people into my place. When everything is set up and ready to go and you have taken care of all the details, it's like opening the door to your guests at a dinner party where everything is ready and you don't have to rush around. You can just enjoy their company. I like that feeling. I always have. I guess the worst part is firing people. Especially when they really want to work for you. That kills me. I make the managers do it now. Words of wisdom: Have a calculator on the table when you are talking about numbers, otherwise it's just talk. I see so many people starting out that make up sales projections in a best-case scenario and the same goes with their costs. Take out the calculator and figure out how much goddamn beer and pizza you are going to have to sell after that 6 million dollar renovation and your $30,000 a month rent. Figure out your best-case scenario and then cut it by 20% and do all of your numbers again. Are you still in business? Good. Now cut that sales number by 20% and do all of your numbers again. Still in business? Good. Keep doing it until you find out exactly what you have to do in the absolute worst case to keep your business alive. Add a theoretical flood that closes you down for three days and you have no loss-of-business insurance. Add a beer cost increase and see what happens. A payroll increase, see what happens. Add any "what-ifs" you can think of by ones, twos, and threes. When you start to get a feeling for it you will be able to look at a situation and it will just give you a bad feeling inside. Kind of like "Yeah, we are technically in business, but if we had to close for one day we would be dead! This is not going to work." You just have to make sure it works. Visit the bar: Réunion Surf Bar, 357 W 44th St (212-582-3200, reunionbar.com)

"People will come back if you are different, and what makes you different is knowing why you do what you do."

Something you wish you had known then that you do now: The most important thing to know before you open a bar is how to get out. If things do work out or if they don't, have a strategy that ensures that you have a way out. Even if you are successful, have a place and somebody to go to once you leave the business. Have all the legal documents and agreements sorted out. Not from a negative standpoint, but be prepared. Just in case, if things don't go as planned, know what you will do. That is good advice for anyone starting any kind of business—know your way in and know your way out. On choosing a concept: There were three of us bartenders living together in the '90s that were all working at Pravda [in Soho], and we decided that we should throw some dinners on Sunday nights when we weren't working. At that time we were all single and were meeting a lot of women bartending. We were cooking food and making drinks, and people were feeling really comfortable in our home. From there it evolved. We first thought we would open a members-only social club, but the smoking law made that too difficult. But it was a gradual thing. On choosing a space: We looked and looked. It's not just about finding the space that you like. If you are lucky enough to find a space that you love and it works out, that's great. You have to make a lot of compromises. You choose a place but you have to think of whether it will work—will the building department approve, will it have enough exits, etc. The choice should be contingent upon getting permits and things like your liquor license. You also have to become a jack of all trades where you become an architect and design the space for service and good execution. Then you have to choose materials for building. You have to wear a lot of hats. On getting a liquor license: It just depends on where you are; in California, there is a lottery and only two licenses are given out a year. Most times you have to buy one from someone who already has one. In New York, you have to deal with community boards and the SLA [State Liquor Authority], and basically nobody gets a recommendation. I suggest hiring someone for the entire process who can hold your hand the whole way, who specializes in the process. On starting capital: That depends on where you are. In NYC, for anywhere from 1,500–2,000 square feet, you need between a one million to a million and a half. That's a modest estimate including build out and opening the place. Sometimes you can purchase someone else's business and acquire all of their materials. That is a good way to save money without spending a lot on new construction. You should raise the money and write a business plan, and if you don't have the money yourself you have to convince investors that it is a good deal for them and a smart idea. That is tricky because nationwide the statistics are terrible. Only 24% of U.S. restaurants will survive year 10, and only 3% in NYC.  On breaking even: It depends on how much you have invested. Operational break even means bringing in the same as what leaves the restaurant, and that is a better place to be than below, but it is not a preferred scenario. Every Irish bar is in business because they know a secret, "Whatever comes in should be greater than what leaves the bar." That just means that your rent, payroll, and recurring expenses like liquor, food, and insurance are covered. Beyond that you want to make more than that so you can pay money back and yourself a salary. On a day in the life of a bar owner: In the morning you get a report from the night before if you weren't there yourself. You have to put in those systems for the closing manager where they tell you what the closing numbers were, were there any problems, how was the service, who worked, etcetera. You read that and you follow up. The morning is a bar owner's evening. Then you visit the bar before opening and start doing inventory, you talk to the staff, and you prepare for service. Then you open for business and your night begins. Your shifts are long and life can be pretty hard, but you have to maintain a healthy lifestyle or you will crash. There is no way that a man or woman in their thirties can maintain a lifestyle of sex, drugs, and rock and roll for more than a few years. On weekends: Everyone is busy on Fridays and Saturdays, that is the only routine you can possible have in the business. The bar is made or broken on slow nights, Sunday through Thursday, and if you are able to attract people to come to your place on those nights than you have something special. That is where you establish a long-term relationship with your clientele. The people who go out on Fridays and Saturdays are the people will talk about you over the water cooler and only come once every six month. Your regulars make you. On the best and worst parts of owning a bar: The best part is seeing your dreams come true and taking this responsibility that you have created for yourself and making it work. You get to feel and enormous sense of accomplishment for making something happen and for having people around you who believe in the same thing you do. The worst thing is that you are everybody's bitch. That is because you are the small business, and when you are the small business you pay for everybody else's tab. Words of wisdom: Know why you do what you do. It is easy to know what to do and how to do it—everybody knows what they are going to serve and how they are going to serve it. But why do you do it? It cannot be for the money, because money only comes when things are being done right. You have to know why so you can teach someone else. When you know this your guests see it too. That's when they come back. They identify with the reasons you are doing what you are doing. Otherwise they can go to the same speakeasy bar and get served the same unremarkable, super-balanced cocktail. People will come back if you were different, and what makes you different is knowing why you do what you do. Visit the bar: Employees Only, 510 Hudson St (212-242-3021, employeesonlynyc.com)

"Probably don't be a felon."

Something you wish you had known then that you do now: We really knew nothing about how to run a bar, we just figured it out day by day. So if anything, maybe how to run a bar? On choosing a concept: A lot of drinks went into it and a lot of brainstorming. We knew we wanted to have a dual concept and we knew what we liked about various bars, like having live music and a great outdoor space. We wanted to create a place where we would enjoy hanging out. The flower shop seemed to be our best fit, at least from the group of ideas that we came up with. On choosing a space: We stumbled upon this space about two years before we took the lease. We met with some people in the backyard for a beer one day and saw the ivy wall. When we heard it was available, we jumped on it immediately. On getting a liquor license: Sit in on a community board meeting or two. Meet your neighbors. Make sure your neighborhood understands what you are trying to do and be respectful. That is a big deal. Also, probably don't be a felon. On starting capital: Six months of runway is very comfortable. I think we started with three. On breaking even: I think it takes an average of somewhere from three to five years—plus a bit of luck. On a day in the life of a bar owner: Some days you might not have much to do, but some days you might find yourself working 18 hours. Opening up a bar is just like starting any business—it's 24/7. On the best and worst parts of owning a bar: The best is meeting a bunch of interesting people, and the worst is getting phone calls in the middle of the night because something went wrong. Words of wisdom: Make sure you have fun and be creative, but treat it as a business. Visit the bar: Sycamore, 1118 Cortelyou Rd, Brookln (347-240-5850, sycamorebrooklyn.com)

At one time or another, most of us have toyed with the idea of owning our own bar. On evenings spent swilling  whiskey after a grueling day at the office, it's a seductive fantasy—trading the cubicle for your own personal clubhouse where you can hang out drinking beers, high-fiving regulars, and selling delicious booze to cool folks who totally get your vision. Of course, most of us sober up, toss out the floor plan we sketched on the back of a cocktail napkin, and go back to doing what we were doing. But those with the resolve to actually follow through on their dreams soon encounter the unforgiving realities of opening a bar in New York City—the hell of securing an affordable space, the Sisyphean task of winning over community boards and getting a liquor license, and the dismal odds of actually staying afloat in a city where drinkers always have another option a few steps away. Instead of just speculating about how awesome it would be to open an Anglo-American craft-beer bar with a daily-changing nacho menu (don't steal that idea!), we rounded up nine successful NYC bar owners—from Dave Brodrick of Blind Tiger to the team behind Death & Co.—to answer the tough questions about opening your own spot. From how much capital to begin with, to what it really takes to break even, these drink-slinging entrepreneurs gave us some real talk on how the bar business works behind the scenes—and why, after all the hard work, it is actually as awesome as you think. Here, meet the men and women who own the bars you party at, and learn a thing or two about trying to open a place of your own.