The Big Bang... 6 Top Tips
The greatest transitioning of bar talent from “tender” to “keeper” is exploding across the planet!
In galactic terms, this is our Big Bang moment, a perfect expanding universe of opportunity!
On the other hand, science warns us: nothing expands forever... at some point, the opposite will occur... it’s called The Big Crunch!
So here’s 6 top tips to help Crunch the numbers, so you‘ll never get Crunched!:
- Finance Person... get one pronto to help with financial plans, budgets, projections. Work out your earliest break-even point and focus daily, weekly and monthly on hitting those numbers.
- Keep costs to a minimum... only spend when you must...always keep your powder dry for another day/time.
- Don’t over invest... whether that’s stock, staff or stuff... always ask the question is this a “must have” or a luxury “nice to have”... base this on your budget/prevailing profitability.
- Work 20% of the things that generates 80% of sales, income, opportunity... everything else leave or delegate.
- Measure everything... including your drinks, staff performance, customer satisfaction levels etc... what’s not measured, is not focused on, what’s not focused on, never happens, this is the Black Hole... sucking everything in its way!
- Metrics... put in place important financial barometers... i.e. costs of goods sold, avg. hourly rates, hours worked, spend per guest, bartender sales. These form part of your biz dash board, knowing at a glance where you are, helps make course corrections, if needed!
Owning your own bar is richly rewarding not to mention empowering... just as a cocktail needs to be consistent i.e. properly portioned and balanced, so a business requires the perfect balance of measures to create the best results!
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Whilst cost cutting is a strategy which produces an outcome(s), does it longer term produce sustainable ROI (return on investment)?
Usually ROI should be measured by the costs of “doing something” versus the “value” delivered.
When implementing a cost cutting program, it’s so important to conduct a 360 degree examination of impacts and consequences before implementation is considered.