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Small Business
A sports bar's ins and outs
June 16, 2000: 11:12 a.m. ET

Before opening a sports bar, know the ins and outs of the business
By Jane Applegate
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NEW YORK (CNNfn) - Dear Jane: My family is thinking about opening a sports bar in our small town. We want to pool our assets and try to make a go of it. Between us, we have about 15 years experience running a store. What are the pros and cons of opening such a business?

graphicOperating a store is a far cry from running a sports bar. While you are still selling things and dealing with money and customers, owning a bar means coping with additional costs -- as well as very strict rules and regulations.

Before signing a lease, make sure you can obtain a new liquor license or transfer control of the one attached to an existing bar. These licenses are not only expensive, but often very tough to get, especially if there are too many bars in the area already. If anyone in your family has been in trouble with the law, it may affect your ability to obtain a license. Contact the state liquor control board to find out the following: What will a liquor license cost you? And is it possible to obtain one in a reasonable period of time?

Finding a great location is also critical to your success. Be sure to comply with local zoning rules affecting establishments that sell liquor and stay open late. You'll also need adequate parking, good lighting, access to the highway and a buffer zone so you don't upset the neighbors. Make sure everyone around your location is aware of what you are planning to do, so there are no surprises or protests after you sign a lease.

Be absolutely sure there is a need for another bar in your town. Determine what will set you apart from the competition. Two huge television sets do not make a good sports bar. You need comfortable seats, great food and enough TVs to please tennis, golf, football, baseball and soccer enthusiasts -- all at the same time. You need a budget to support local sports teams and have a budget to buy cool memorabilia to decorate the walls. Contests and other promotions are essential to building a clientele.

You'll need a good rapport with liquor distributors to make sure the beer, wine and spirits arrive on time and in the quantities you need.

I would suggest spending time with as many bar owners as you can to learn the inside scoop on the business.

Also, get a job at a sports bar. There's no better way to find out whether it's the life you want.

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