Sports bar business plan for starting your own business
Watching sports become more enjoyable when you have someone sitting near you to discuss your favorite shot or to taunt the laziness of some footballer.
If you want to start a business and also want to give people a comfortable setting to enjoy sports, you must think about opening a sports bar. A sports bar is a place where televised sports are played on large screens. Nearly all sports bars also offer grilled foods and drinks to provide customers with complete entertainment.
Well, the first step to enter this venture will be creating sports bar and grill business plan. If you don’t know what you should include in your opening a sports bar business plan you can take help from here. In this sample, we are providing the business plan written for a sports and grill bar namely Denzel Sports Bar.
Sports bar business plan summary
2.1 The Business
Denzel Sports Bar will be a registered and licensed sports bar located in Las Vegas. The bar will offer luxurious seating with large screens for people to watch sports. Besides, the sports bar will also be offering high-quality cuisines, grilled chicken and fish foods, and drinks to the customers.
2.2 Management of Sports Bar
Management is a very crucial factor if you are opening a sports bar. You will need to procure the inventory, install screens, and ensure the preparation of quality foods. To manage your business effectively you must plan everything about your business before actually starting it.
Denzel decided to hire a co-manager to supervise the business operations with him. Besides, he will also hire cooks, cleaners, waiters, sales executives, and other general employees to manage the smooth running of his business.
In this sample sports bar business plan, we will be providing Denzel’s sports bar business plan template free of cost. So, you can learn in-depth about how to start and run this business.
2.3 Customers of Sports Bar
In your start up sports bar business plan you should identify the groups of your customers. This will help you in adopting the services and organizing the events that can draw your customers’ attention.
The major customers of Denzel Sports Bar will comprise college students, sportspersons, and senior citizens.
2.4 Business Target
Our target is to become the most renowned sports bar in Las Vegas within three years of our launch. Our financial targets to be achieved over the next three years are demonstrated here.
3.1 Company Owner
Denzel Ben will be the owner of Denzel Sports Bar. Denzel has worked in many restaurants business and clubs on managerial posts. He is famous among his colleagues for his teamwork and management skills.
Besides, he is a passionate football fan. He has attended a few matches in-person and also has chitchat with some international-level players.
3.2 Why the Sports Bar Business is being started
After working as a salaried person in several positions, Denzel realized that he can’t get paid according to his creativity and talent. Eventually, he decided to centralize his efforts and start his own business. Since he had experience with clubs and a passion for sports, so he found a sports bar the ideal choice for a startup.
3.3 How the Sports Bar Business will be started
Step1: Creating A Business Plan
In this business plan proposal sample sports bar, we are providing the business plan for Denzel Sports Bar. Denzel decided to design a large sports bar. So, if you are looking for a small sports bar business plan, you would have fewer expenses and staff relative to what is listed here.
Moreover, if you want to buy a franchise then you would need sports bar franchise entity business plan. In this case, you should study some additional sports bar business plan examples. It is because your startup expenses will rise more for buying a franchise.
Step2: Acquiring Required Licenses & Permits
Step3: Establish Your Brand
Denzel will lease a large property in Las Vegas to convert it into a sports bar. Inventory including LED screens, furniture, crockery will be purchased. The required staff will be hired. And the business targets will be defined to mark the market presence.
Step4: Marketing & Advertisement
The next step would be to promote the services of Denzel Sports Bar to get more and more customers. The marketing and sales strategy plan developed for Denzel’s startup will be listed in detail in this sample plan.
Step5: Establishing a Strong Web Presence
Denzel will hire a web developer to ensure a strong online presence.
|Research and Development||$25,000|
|TOTAL START-UP EXPENSES||$400,000|
|Other Current Assets||$207,000|
|Start-up Expenses to Fund||$400,000|
|Start-up Assets to Fund||$1,156,000|
|TOTAL FUNDING REQUIRED||$1,556,000|
|Non-cash Assets from Start-up||$1,526,000|
|Cash Requirements from Start-up||$368,000|
|Additional Cash Raised||$53,000|
|Cash Balance on Starting Date||$35,500|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$46,000|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,556,000|
|Loss at Start-up (Start-up Expenses)||$426,500|
|TOTAL CAPITAL AND LIABILITIES||$2,058,500|
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Services of Sports Bar
Before you create an opening a sports bar business plan, you should decide your services. So that you can plan for the inventory and staff accordingly. To make customers stay at the bar, a sports bar should provide many services other than just showing sports. Therefore, even if you are looking forward to purchase existing business sports bar business plan, you should keep thinking about introducing new trends to stay competitive.
- Showing Live Sports: This will be our primary service. We will show televised sports on large screens so that people who love watching sports in groups can gather at our bar.
- Grilled Foods & Cuisines: People usually spend hours in sports bars. Therefore, we’ll be offering delicious and fresh food items for them. Our popular offerings will include
- Grilled Barbeque
- Grilled Meat, Chicken and Fish
- Grilled Sandwiches
- Brunswick stew
- Beverages: We will offer the following drinks to our customers.
- Juices: Apple, Pomegranate, Orange, Beet, Mango, and Grape Juice
- Teas & Coffees: Green Tea, Black Tea, Latte, Cappuccino, Espresso, Americano
- Salads: We will also offer fruit, vegetable, and chicken salads.
- Indoor Games: We will be offering indoor games for those customers who might not be interested in sports televised at the time. We will arrange the following games at our space:
- Table Tennis
Marketing Analysis of a Sports Bar
In your retail sports bar business plan you should do an accurate marketing analysis. Marketing analysis is the study of your target market from various aspects to understand market ups and downs, the latest trends, your competitive position, and the unoccupied opportunities. Moreover, it allows you to identify that knock out criteria for a sports bar business plan by following which you can run your business smoothly.
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If you are not an expert at doing marketing analysis you can have a general idea of the sports bar industry by reading this sports bar business plan problem example. In this business plan template for sports bar, we have listed the whole marketing analysis of Denzel Sports Bar.
5.1 Market Trends
Sports bars and nightclubs have always remained in-demand in the U.S. Though many sports bars are already running in the U.S. there is still a space for more – provided that the new startups come up with exclusive competitive edges.
These days, sports bars are witnessing a newer trend. The owners of sports bars have started to provide more entertainment options to their customers along with watching sports.
5.2 Marketing Segmentation
Denzel divided his expected customers into three groups. He did so to study the requirements of different groups of people in a systematic manner. The market segmentation also enabled him in devising pricing and discounting strategies.
Business Plan for Investors
The groups of potential customers as recognized by Denzel Sports Bar are listed here:
5.2.1 College Students
Our first target group will be the young boys and girls who study in colleges and universities situated near us. The students of such age groups are often involved in sports activities. They enjoy playing as well as watching sports with their friends. We expect them to come to our bar frequently as we offer delicious eatables and luxurious seating along with thrilling televised sports.
5.2.2 Local Sportspersons
Our second target group comprises of local level athletes. There are two sports grounds in Las Vegas that are located at a walking distance of 10 to 15 minutes from us. Therefore, we believe that athletes who play in our vicinity will also become our potential customers. As we will provide them what they require to refresh their minds and bodies after a hectic match.
5.2.3 Senior Citizens
Our third target group will comprise of senior citizens in our locality. Elderly people usually prefer to watch sports at a sports bar. Because it allows them to also socialize with other members of the community. At our sports bar, we will have a comfortable seating arrangement and a pleasant environment for them to watch sports. And also to eat, drink and play light games with their fellows.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
5.3 Business Target
- To earn a profit margin of $18.5k per month by the end of the third year
- To achieve an average rating above 4.85 by the end of the first year
- To achieve a CSAT score above 90 by the end of the first year
- To maintain a customer repeat rate above 60% throughout our service years
5.4 Product Pricing
Our prices will be a little higher than our competitors. It is because we are providing elegant indoor seating unlike many of our competitors. And secondly, because we are providing an adequate space to play indoor games too.
However, we still hope to attract more customers to our bar as we have developed an excellent sales strategy plan.
Marketing Strategy of Sports Bar Business
Sales strategy is also an important part of an opening a sports bar business plan. In this part, you define your approach to stay competitive. Moreover, you also formulate an effective advertisement strategy in this section of your finale sports bar grill business plan.
Here we are providing the sales strategy of Denzel Sports Bar for anyone who wants to benefit.
6.1 Competitive Analysis
- It is only us in the whole of Las Vegas who are offering indoor games. This will help us accommodate the customers who might not be interested in watching the sports televised at the time.
- Secondly, our menu is really vast. So, each of our customers will be able to relish their favorite food while watching sports or playing games.
- We have two major sports grounds located near us. So the athletes playing there are also expected to visit us to relax and refresh.
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6.2 Sales Strategy
- We’ll host live matches of national level players at least two times a year.
- We’ll ensure a strong online presence. Through our website, we’ll be briefing our customers about the incoming events.
- We’ll advertise our startup through Google Local Services ads and local newspapers.
- We’ll offer a 50% discount on all of our foods and drinks for the first three months of the launch.
- We’ll issue 20% discount cards to our valued customers.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|Showing Live Sports||39,000||41,340||43,820|
|Grilled Foods & Cuisines||31,000||32,860||34,832|
|Salads & Beverages||16,000||16,960||17,978|
|TOTAL UNIT SALES||107,000||113,420||120,225|
|Unit Prices||Year 1||Year 2||Year 3|
|Showing Live Sports||$43.00||$49.88||$57.86|
|Grilled Foods & Cuisines||$47.00||$54.52||$63.24|
|Salads & Beverages||$37.00||$42.92||$49.79|
|Showing Live Sports||$1,677,000.00||$2,062,039.20||$2,535,483.40|
|Grilled Foods & Cuisines||$1,457,000.00||$1,791,527.20||$2,202,861.85|
|Salads & Beverages||$592,000.00||$727,923.20||$895,054.37|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Showing Live Sports||$40.00||$46.00||$53.00|
|Grilled Foods & Cuisines||$42.00||$49.00||$56.00|
|Salads & Beverages||$36.00||$41.00||$47.00|
|Direct Cost of Sales|
|Showing Live Sports||$1,560,000.00||$1,901,640.00||$2,322,481.20|
|Grilled Foods & Cuisines||$1,302,000.00||$1,610,140.00||$1,950,569.60|
|Salads & Beverages||$576,000.00||$695,360.00||$844,947.20|
|Subtotal Direct Cost of Sales||$4,089,000.00||$4,986,240.00||$6,085,417.60|
The work efficiency and behavior of the employees directly impact the success of a business. Therefore you must hire your staff after conducting detailed tests and interviews. A good practice is to first list the needed staff along with their job responsibilities in your sports bar business plan template. So that you would know the criteria to judge the abilities of job seekers.
7.1 Company Staff
Denzel will manage the business himself. The staff he will hire is listed below:
- 1 Co-Manager to help manage the sports bar
- 1 Accountant to maintain financial records
- 4 Chefs to prepare food items and drinks
- 2 Waiters to serve the customers
- 1 General Assistant to do routine tasks
- 2 Cleaners to maintain the facility and kitchen
- 2 Sales Executives to execute sports bar’s sales strategy plan
- 1 Driver to provide transport facility
- 1 Web Developer to manage the company’s social sites
- 1 Security Guard
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
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The last thing to include in your business plan for sports bar and grill is a financial plan. A financial plan analyzes all the expenses, investments group for start-up, sales, profits, and losses to determine
- The current financial status of your business
- The path to follow to achieve your financial objectives
Denzel understood the importance of an accurate financial plan. Therefore he hired a professional financial analyst to make a financial plan. The detailed brake-even analysis, gross margin calculations, profit & loss projections, and business ratios calculations done for Denzel Sports Bar are given here.
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.18%||8.20%||8.26%|
|Long-term Interest Rate||8.45%||8.47%||8.50%|
8.2 Brake-even Analysis
|Monthly Units Break-even||5348|
|Monthly Revenue Break-even||$134,200|
|Average Per-Unit Revenue||$237.00|
|Average Per-Unit Variable Cost||$0.64|
|Estimated Monthly Fixed Cost||$161,290|
8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$4,089,000||$4,986,240||$6,085,418|
|TOTAL COST OF SALES||$4,089,000||$4,986,240||$6,085,418|
|Gross Margin %||7.91%||8.67%||9.35%|
|Sales and Marketing and Other Expenses||$127,000||$128,000||$129,000|
|Total Operating Expenses||$313,635||$329,928||$347,595|
|Profit Before Interest and Taxes||$37,365||$143,256||$279,895|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$15,000||$16,200||$17,496|
|SUBTOTAL CASH FROM OPERATIONS||$73,000||$79,570||$85,936|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||$0||$0||$0|
|New Current Borrowing||$0||$0||$0|
|New Other Liabilities (interest-free)||$0||$0||$0|
|New Long-term Liabilities||$0||$0||$0|
|Sales of Other Current Assets||$0||$0||$0|
|Sales of Long-term Assets||$0||$0||$0|
|New Investment Received||$0||$0||$0|
|SUBTOTAL CASH RECEIVED||$74,000||$80,000||$86,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$56,000||$61,000||$66,000|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||$0||$0||$0|
|Principal Repayment of Current Borrowing||$0||$0||$0|
|Other Liabilities Principal Repayment||$0||$0||$0|
|Long-term Liabilities Principal Repayment||$0||$0||$0|
|Purchase Other Current Assets||$0||$0||$0|
|Purchase Long-term Assets||$0||$0||$0|
|SUBTOTAL CASH SPENT||$59,000||$63,720||$68,818|
|Net Cash Flow||$14,000||$16,000||$18,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$298,000||$333,760||$375,146|
|TOTAL LONG-TERM ASSETS||$2,300||$2,576||$2,898|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$14,300||$16,016||$18,002|
|TOTAL LIABILITIES AND CAPITAL||$292,600||$334,880||$376,740|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.01%||2.23%||2.47%||2.40%|
|Total Current Assets||150.03%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||94.30%||96.85%||99.56%||97.80%|
|Profit Before Interest and Taxes||41.03%||42.14%||43.32%||33.90%|
|Total Debt to Total Assets||0.20%||0.19%||0.18%||0.40%|
|Pre-tax Return on Net Worth||75.98%||76.50%||77.10%||75.00%|
|Pre-tax Return on Assets||93.75%||98.44%||103.36%||111.30%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||32.59%||33.60%||34.64%||N.A.|
|Return on Equity||54.83%||56.53%||58.28%||N.A.|
|Accounts Receivable Turnover||7.7||7.8||7.9||N.A.|
|Accounts Payable Turnover||16.2||16.4||16.7||N.A.|
|Total Asset Turnover||2.5||2.6||2.6||N.A.|
|Debt to Net Worth||-0.03||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$236,400||$249,638||$263,618||N.A.|
|Assets to Sales||0.81||0.83||0.86||N.A.|
|Current Debt/Total Assets||1%||1%||1%||N.A.|
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