A Business Proposition
April 30, 2016,
Anthony,
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Here is how I filled out the business proposal checklist for investors that you sent me last week.
Seasoning: I’ve been bartending and managing bars for the past decade in London, Atlanta, and New York City.
(Dave will vouch for me on the managing bit. As will my old mate in London at J. D. Wetherspoons.)
Customers: Customers are compelled to buy and consume alcohol for a multitude of reasons. A well made drink can help take the sting out of life’s difficulties along with providing a lift to moments of celebration. People need contact with each other. They need recognition and consolation. This bar’s sole mission will be to provide an atmosphere appropriate to these needs.
Team: I love meeting people where they are and helping them get to where it is they want to go. My passion for learning about drink making and the service industry along with effectively communicating and connecting with people means I have never had to work a day in my life. I plan on taking up residence within walking distance of the bar and am prepared to work whenever or however needed. As I settle into the community of Savannah, I plan on becoming involved with local organizations such as the Jaycees, Rotary, Kiwanis, and Lions Clubs. My own financial stake in this endeavor will be 7% of the total amount of investment capital being sought, and my funding has already been arranged. For the first 12-18 months of operation, a scaled back offering of food will be paired with liquor, wine, and beer. The staff will include myself as owner-operator, one bar runner, two other bartenders, a floor manager, and a door man as needed. A spirit of camaraderie and pride in service will pervade the staff culture along with strict adherence to local food and beverage ordinances of the city of Savannah and the state of Georgia. This will include proper permits and insurance being procured prior to the start of operation.
Opportunity: Our area of operation will be accessible to locals and tourists alike. A home to locals who work just down the street and to those who reside just across the square from where we operate. Our proximity to several famous Savannah landmarks will provide our operation plenty of visibility for any traveler passing through the heart of Savannah. In building a reputation for excellence in service and products on offer, word of mouth marketing will be our most powerful brand ambassador. Our operation will provide a healthy and stable margin of profit through efficient application of the investment sought.
Business Model: The bar operation will be a profitable one. We will hit a 5-7% total operating profit margin during our first 12 months of operation. In adapting and expanding both beverage and possibly food offerings, we expect our profit margin to grow to an 8-10% range over the following 24-36 months of operation. This projection is based upon reasonably steady growth in repeat customers and moderate growth in tourist trade. In tracking the number of establishments operating in our footprint and seasonal fluctuations in local tourism, we feel confident in our projections of operating profit margin.
How does that sound? Do you think a group of investors would buy any of it? Let me know what I need to fix. Also would it help if I included a name for the bar? I gotta get Sean and Drew down here to work with me. Also Ollie. You think any of them would come down and work a season in Savannah? Don’t forget my reference-not as a painfully funny bartender who makes your drinks strong as hell, but as a sophisticated and seasoned industry pro. Tell them I am a New York Mixologist with book deals or a trailblazer in some new cocktail revival. Anything to make me sound sexy. Money tends to follow the eye, and I gotta come up with some magic to pull off this trick.
Thanks again.
Patrick
