Table of Content

    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 Years Profit Forecast - Sports Bar Business Plan Example

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    Helps the franchisee get business case approval from the franchisor

    Company Summary

    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.

    Startup Cost - Sports Bar Business Plan Example

    Start-up Expenses  
    Legal $251,000
    Consultants $0
    Insurance $31,000
    Rent $31,000
    Research and Development $25,000
    Expensed Equipment $58,000
    Signs $4,000
    TOTAL START-UP EXPENSES $400,000
    Start-up Assets $317,000
    Cash Required $354,000
    Start-up Inventory $53,000
    Other Current Assets $207,000
    Long-term Assets $225,000
    TOTAL ASSETS $1,156,000
    Total Requirements $1,556,000
    START-UP FUNDING
    Start-up Expenses to Fund $400,000
    Start-up Assets to Fund $1,156,000
    TOTAL FUNDING REQUIRED $1,556,000
    Assets
    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
    TOTAL ASSETS $1,982,500
    Liabilities and Capital
    Liabilities $30,000
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $46,000
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $76,000
    Capital
    Planned Investment $1,556,000
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,556,000
    Loss at Start-up (Start-up Expenses) $426,500
    TOTAL CAPITAL $1,982,500
    TOTAL CAPITAL AND LIABILITIES $2,058,500
    Total Funding $1,556,000

    Any questions? Get in Touch!

    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
      • Steaks
      • Grilled Meat, Chicken and Fish
      • Grilled Sandwiches
      • Brunswick stew
      • Tex-Mex
    • 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
      • Cocktail
    • 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
      • Snooker
      • Carrom

    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.

    Marketing Segmentation - Sports Bar Business Plan Example

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    College Students 33% 35,000 37,000 39,000 42,000 44,000 10.00%
    Local Sportspersons 31% 29,000 30,000 32,000 34,000 35,000 10.00%
    Senior Citizens 36% 34,000 35,000 36,000 38,000 40,000 11.00%
    Total 100% 98,000 102,000 107,000 114,000 119,000 10%

    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

    Note

    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

    1. 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.
    2. 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.
    3. We have two major sports grounds located near us. So the athletes playing there are also expected to visit us to relax and refresh.
    Any questions? Get in Touch

    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

    Sales Monthly - Sports Bar Business Plan Example

    6.4 Sales Yearly

    Sales Yearly - Sports Bar Business Plan Example

    6.5 Sales Forecast

    Unit Sales - Sports Bar Business Plan Example

    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
    Indoor Games 21,000 22,260 23,596
    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
    Indoor Games $34.00 $39.44 $45.75
    Sales
    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
    Indoor Games $714,000.00 $877,934.40 $1,079,508.14
    TOTAL SALES $4,440,000.00 $5,459,424.00 $6,712,907.75
    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
    Indoor Games $31.00 $35.00 $41.00
    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
    Indoor Games $651,000.00 $779,100.00 $967,419.60
    Subtotal Direct Cost of Sales $4,089,000.00 $4,986,240.00 $6,085,417.60

    Personnel plan

    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

     Personnel Plan      
    Year 1 Year 2 Year 3
    Co-Manager $12,000 $13,200 $14,520
    Accountant $11,000 $12,100 $13,310
    Chefs $44,000 $48,400 $53,240
    Waiters $17,000 $18,700 $20,570
    General Assistant $8,000 $8,800 $9,680
    Cleaners $15,000 $16,500 $18,150
    Sales Executives $14,000 $15,400 $16,940
    Driver $7,000 $7,700 $8,470
    Web Developer $6,000 $6,600 $7,260
    Security Guard $6,000 $6,600 $7,260
    Total Salaries $140,000 $154,000 $169,400

    Any questions? Get in Touch!

    Financial Plan

    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

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.18% 8.20% 8.26%
    Long-term Interest Rate 8.45% 8.47% 8.50%
    Tax Rate 24.02% 24.86% 25.17%
    Other 0 0 0

    8.2 Brake-even Analysis

    Brake-even Analysis - Sports Bar Business Plan Example

     Brake-Even Analysis  
    Monthly Units Break-even 5348
    Monthly Revenue Break-even $134,200
    Assumptions:
    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
    Sales $4,440,000 $5,459,424 $6,712,908
    Direct Cost of Sales $4,089,000 $4,986,240 $6,085,418
    Other $0 $0 $0
    TOTAL COST OF SALES $4,089,000 $4,986,240 $6,085,418
    Gross Margin $351,000 $473,184 $627,490
    Gross Margin % 7.91% 8.67% 9.35%
    Expenses
    Payroll $140,000 $154,000 $169,400
    Sales and Marketing and Other Expenses $127,000 $128,000 $129,000
    Depreciation $2,245 $2,298 $2,340
    Leased Equipment $0 $0 $0
    Utilities $3,100 $3,160 $3,200
    Insurance $1,940 $1,980 $2,080
    Rent $3,350 $3,490 $3,575
    Payroll Taxes $36,000 $37,000 $38,000
    Other $0 $0 $0
    Total Operating Expenses $313,635 $329,928 $347,595
    Profit Before Interest and Taxes $37,365 $143,256 $279,895
    EBITDA $37,365 $143,256 $279,895
    Interest Expense $0 $0 $0
    Taxes Incurred $7,473 $28,651 $55,979
    Net Profit $29,892 $114,605 $223,916
    Net Profit/Sales 0.67% 2.10% 3.34%

    8.3.1 Profit Monthly

    Profit Monthly - Sports Bar Business Plan Example

    8.3.2 Profit Yearly

    Profit Yearly - Sports Bar Business Plan Example

    8.3.3 Gross Margin Monthly

    Gross Margin Monthly - Sports Bar Business Plan Example

    8.3.4 Gross Margin Yearly

    Gross Margin Yearly - Sports Bar Business Plan Example

    8.4 Projected Cash Flow

    Projected Cash Flow - Sports Bar Business Plan Example

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $58,000 $62,640 $67,651
    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
    Cash Spending $36,000 $40,000 $44,000
    Bill Payments $20,000 $21,000 $22,000
    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
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $59,000 $63,720 $68,818
    Net Cash Flow $14,000 $16,000 $18,000
    Cash Balance $25,000 $27,000 $28,000

     

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet      
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $286,000 $320,320 $352,352
    Accounts Receivable $26,000 $29,120 $32,731
    Inventory $4,400 $4,928 $5,539
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $298,000 $333,760 $375,146
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $18,100 $20,272 $22,806
    TOTAL LONG-TERM ASSETS $2,300 $2,576 $2,898
    TOTAL ASSETS $299,000 $334,880 $376,740
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $18,000 $20,160 $22,660
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $14,300 $16,016 $18,002
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $14,600 $16,352 $18,380
    Paid-in Capital $30,000 $30,000 $30,000
    Retained Earnings $58,000 $63,220 $69,542
    Earnings $199,400 $217,346 $239,081
    TOTAL CAPITAL $278,000 $303,020 $333,322
    TOTAL LIABILITIES AND CAPITAL $292,600 $334,880 $376,740
    Net Worth $273,000 $297,570 $327,327

     

    8.6 Business Ratios

     Ratio Analysis        
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.24% 8.02% 8.89% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.36% 10.37% 11.49% 9.80%
    Inventory 5.39% 5.97% 6.62% 9.90%
    Other Current Assets 2.01% 2.23% 2.47% 2.40%
    Total Current Assets 150.03% 151.00% 152.00% 158.00%
    Long-term Assets 11.50% 11.67% 11.75% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.78% 4.82% 4.86% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.33% 7.39% 7.46% 7.38%
    NET WORTH 100.60% 101.40% 102.34% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 93.90% 96.44% 99.14% 99.00%
    Selling, General & Administrative Expenses 94.30% 96.85% 99.56% 97.80%
    Advertising Expenses 1.59% 1.63% 1.68% 1.40%
    Profit Before Interest and Taxes 41.03% 42.14% 43.32% 33.90%
    Main Ratios
    Current 36.5 37.4 38.7 32
    Quick 33.1 34 34.85 33
    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.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.9 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32 33.6 33.9 N.A.
    Accounts Payable Turnover 16.2 16.4 16.7 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.6 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.03 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $236,400 $249,638 $263,618 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.81 0.83 0.86 N.A.
    Current Debt/Total Assets 1% 1% 1% N.A.
    Acid Test 29.3 29.9 30.6 N.A.
    Sales/Net Worth 2.1 2.1 2.2 N.A.
    Dividend Payout 0 0 0 N.A.

     

     

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