My business idea

[Sarahcular]

hi everyone,

I have been planning for the past 6 months on opening a business in New Zealand. the business is a non-alcoholic bar. I really want to do this as theres no like it in my country and it would be suitable for families, kids, under aged etc...
all drinks will be similar to that in a bar but non alcoholic ofcourse.
drinks will be fancy and the place will be exotic with palm trees etc.
I will also be serving coffees, finger food, snacks, salads etc
my brother is a DJ and has offered to play music for me live at the bar.
my sister is a designer (interior and industrial) and has offered to set up the decor.
my other sister will be working at the bar serving customers etc...
my close friends will also be working with me.
so basically it will be a family runned business.

I am also planning to take a trip to China to do my shopping from there (furniture, glassware etc)

I am planning to open it at a new development area where a new university has opened, shopping centres, offices, schools. it is already a busy area and it is expanding quickly.

I have yet to go see an accountant but I have already spoken to an accountant and I will be meeeting with one soon.

the question is: do you advice that i go ahead with the idea and will it be worth it (financially?) thinking about legal issues, insurance kind of puts me off but its important.

I am planning to open it this summer which will be around october 08 - New Zealand summer that is.


Any advice would be greatly appreciated!

[crackah]

Okay the idea sounds interesting.
What I guess you could do is target it to teenagers, 15, 16, 17 and to allow them to go clubbing, as you cannot until you are 18.

Also, a problem is that most bars or clubs make their cash from drinks.

Eg, I went to a club this weekend, and got charged $14 for a burbon and coke and a bottle of water, as well as $15 to get into the place. That is completely F*CKED. Left early as the place was terrible. But, they still get ALOT of money.

Im not really sure if it will be as profitable as a normal bar. Do some surveys of high school people and see if they would attend it.

[Squandered Halfpints]

Its an alright idea, mainly due to the fact that there aren't many nitetime social venues available to teenagers. But I wouldn't focus too much on the "fake" alcoholic beverages. You spend most of your time thinking of activities offered (video games, pool, darts, shuffle board, ping pong, etc.) and overall atmosphere (chairs, couches, dance floor) this type of thing. Have a small cover charge, and charge a premium for popular drinks/snacks.

[Lextalonios]

I think this sounds like a good idea. I don't know your area but if you have done some research and looked around and this is a one of a kind idea I think it is great. If I could offer a few thoughts and take them for what they are worth just some thoughts I had when I read your message above.

1. One thing that might help you draw people to your business could be that you offer some kind of like sport drinks also. A lot of time if you are around a college or university if you can bring in the athletic crowd others will tend to follow.

2. The fact that you have a lot of family and friends that want to help you get this off the ground is very cool. One thing to always remember when using others to help you accomplish your goals is that if they take care of you make sure to always take care of them in return.

3. I actually think your legal issues will be less then a regular bar because of the fact that you won't be serving alcohol. Plus you can spin your business as something that helps the community and doesn't add to it decline.

All and all I think you have a great idea and I think you are going down the right path to achieve your goal. Please touch base with an Accountant as soon as possible that is always a smart idea and a good habit to get into from the start of any business venture. I think you have a great mind and head for looking around your area to find a niche and I would be willing to bet that this won't be the only or last business you start. Have fun and make lots mistakes that is what in the long run will make you great.

[mattnelson]

Sarah,
I really think that you need to draw up a plan and definately do some market research. Im a 17 year old male from the north island and to be honest couldnt really see myself going there. I mean i can go drinking (real drinking) with mates. It would have to have some pretty nifty things to make me want to go. Feel free to pm me more with your idea and i will give you my view as what i'd presume to be your target audience.
Cheers,
Matt

[chriswick]

Sounds interesting, although I would to alot of market research before you go to China and buy all your stuff!

[jasaunders]

Maybe there's a reason there is nothing like it on the island, because there is no market for it. You need to do considerably more research. You should do a formal survey (not just ask a few friends) or you can likely find some good secondary research that has been published on this type of thing. No one here can tel you if its a good idea or not, you have to do the work yourself to determine this.

[Jmcauley]

Seems like the idea has potential, but you must find a way to differentiate your place from a general lounge. The fact that you won't offer alcohol won't necessarily differentiate it... you need to be creative and offer something that most lounges/bars do not.

[crackah]

Maybe there's a reason there is nothing like it on the island, because there is no market for it. You need to do considerably more research. You should do a formal survey (not just ask a few friends) or you can likely find some good secondary research that has been published on this type of thing. No one here can tel you if its a good idea or not, you have to do the work yourself to determine this.

Yep 100% correct. There maybe a reason non exist in Australia either. I knew of one which shut down. It was very popular, but it closed. No money maybe?

[Sarahcular]

thanks for that but i have done surveys at schools, universities, shopping centres and online.
i didnt get a single negative feedback on the idea regarding that the community im planning to open it at is a middle class - upper class market and is surrounded by high schools, junior schools, university, shopping centres and many bars and restaurant. and most people i surveyed commented that it would be suitable to take the family to, non drinkers, pregnant women, kids, uni students who need somewhere to "chill" in between lectures (we tend to have long breaks between lectures) and plus i will be serving light food and snacks. its not supposed to be a "choose this bar over the alcohol bar" its just offering an alternative to people who dont want to drink or hang out at the bar or not allowed to drink yet....

i remember when i was a teenager me and my frends had hardly a place to go apart from restaraunts or cafeterias and even we would go quite far for this restaraunt who served this really nice redbull drink mixed with other drinks but we couldnt go there often due to it being so far....

my aim is to make it look and feel like a tropical hutt with a very relaxing environment... the non alcoholic drinks are gonna consist of very cold tropical looking drinks with the parasol and all and also offer coffees for those who still want their coffee and have it in a nice place rather than go to place downtown.... this is all missing in this large community...
and ofcourse i have my own drink recipes and all so there wont be like it - atlwast not in this country O.o

[jasaunders]

Wow, you did a survey and 100% of the respondents would come to your establishment. That's pretty impressive. You should open up tomorrow, the lines will be snaking down the street with people waiting to get in.

Sorry for the sarcasm, but you really need to look at secondary research on nonalcoholic establishments and people's habits in this area, along with research on other places that have tried similiar concepts. And lastly, you should conduct an "accurate" survey to determine the market size, not just asking a bunch of people around the area what they think. Just because they like the idea doesn't mean they are going to come.
Plus, you are relying on the fact that teenagers have nothing else to do. While this is true, they also have no money. Teenagers will not spend a lot of money at your establishment, they will just want to hang out as cheaply as possible.

[exstatic]

I know that the only thing I wanted to when I was underage and not allowed to drink alcohol, was to actually drink alcohol

I think you need to change your tactics, maybe make your place more of a cafe / lounge type.. with games, playstations, internet, pool etc.. give the guys a reason to come.

On another note.. how do you plan to make any money?

[clp11479]

bars make money because people want to get drunk, so there is a result for buying multiple drinks (then when they get drunk they buy even more drinks). if you have a non-alcoholic bar why would people want to buy multiple drinks? i might go, have 1 drink as i talk with a friend and that's it. just my opinion.

[capforge]

I remember back when I was a waiter in college- teenagers were the worst customers. Ten of them would take up a booth for hours and spend a total of $1.75 and create $20 worth of mess to clean up, not to mention putting off the other regular customers.

I have to agree with jsaunders that a 100% positive survey is pretty suspicious. There are right ways and wrong ways to do a survey, and you can definitely get bad information from doing it wrong. I applaud the fact that you are doing research, but you need to be very careful how you go about it.

That is not to say that a non alcohol bar wouldn't work, but I would not call it a bar. I would call it a coffee shop/lounge and then add in the extra exotic drinks. The difference in name and impression is significant. People have proven their interest in going to coffee shops, but no alcohol bars have a pretty dismal track record from what I've seen. People expect something different from a bar than they expect from a coffee shop, and a no alcohol bar isn't going to provide the bar atmosphere they are expecting, in my opinion.

And in the two times I've been to NZ I have yet to meet anyone who didn't like to go out for a pint, including the younger people.

[RickyCeez]

"I am planning to open it at a new development area where a new university has opened"

University, thats your problem... The only thing college kids wanna do is get drunk and party. I don't think its worth it, and il tell you why.

1. You know some asshole will sneak in a grey goose. Now, what happens if the police happen to throw in an undercover?... you would be screwed for underage drinking and its not even your fault.... and yes you can still get introuble even if you have not served it.

2. Your insurance will be through the ROOOOOOOOF. Underage kids in a bar???? thats just asking for a fist fight. So obviously your going to need security.

3. You making it a "non-alchohol" bar, Automaticly draws away ANY adults... therefore you must make sure you have a serious teenage population to fill that hole.. and to be honest.. im a 16 year old male from NYC... and I couldnt even see myself going to "kids bar".. it just doesnt make sense to me....

Now, on the other hand... what about starting a teenage CLUB, rather then just a bar.
and dont do finger foods... just drinks.. and charge 3$ for a small cup of soda.. and a 10-15$ addmission.

But even then, you would have to do your research on demographics...