Running a Bar

[Calum18]

Hi there,

Went to Carvoeiro for 2 weeks recently..and went for 10 days last summer. Me and my friend are turning 18 within the next month and couldn't help but notice a couple of bars are currently for sale. Now i have no idea in running a business or a bar, and whether its a good investment, because there is clearly alot of work and thought that needs to go into it! Could anyone possibly tell me firstly if it is worth it, and if so where we should start!? My dad said we need to do a business plan looking at wages, costs of supplies, accomodation etc

Cheeers!

[Jaylay]

Having had a bar many years ago in the area I can speak from experience.There are 2 main reasons why there are so many bars for sale in the area.

!.The successful ones have been run for many years by the same person /people and they have had enough of the long hours etc. These are normally also the owners of the bar themselves.

2.The rents charged by the property owners (or the mortgage repayments) means there is no way you can make a profitable business,

Sorry to spoil your dream but I have seen so many come and go in the last 20 years I felt that a word of warning should be given.

If you get the chance come for a summer and work in one of the bars, at your age you will have a good time but don't expect to have any money left at the end of it, after work you will be spending it faster than you can earn it,

[Lesley Jean]

Your enthusiasm is wonderful but why do you think that so many bars are up for sale??? They just are not able to make a go of it in this economic climate. A lot of the bars are struggling to make enough money with the number of people coming to the town, yes it is busy during August but you have to make enough to cover the other 11 months of the year.
It is a very tiring business to be in believe me, I know, I was in the trade for many years.

You might also have problems with the local business laws unless you have someone who knows what the rules are, they are many and complicated and to be honest if you know nothing about the business or trade you really are letting yourself in for a tough time.

Sorry to be so negative but think of the thousands of people who's dream it was to go to somewhere like Cvo to run a bar..... I bet not many of them are still there doing it now....

[cereza]

I am sorry to be another to pour cold water onto your enthusiasm but this is not a good idea especially in the current economic climate.
Setting up and running a business from scratch in your own country is hard enough but to do it in a foreign country is almost suicidal.
Whatever business you are thinking of going into it is essential to have experience in that field by working within it for someone else so that you learn as much about it as possible before risking your own money

[Bristle Si]

I've never had my own business, always employed by an employer, but i know of friends who've had bars.

Difficult one. You first need to have a proper business plan and try to size your market. Do you want to aim your establishment at a particular group or will it be a place for all? What kind of people visit CVO or are resident? These are some factors to consider, as well as the obvious turnover, profit, etc.

Try and think of some USPs (Unique selling points) that will attract the punters. Do you want your bar to be known for something that people will be attracted to? Be 'front of house' as much of the week as is possible.

CVO itself - well we've been visiting for 8 years now and i think it's a tricky little place if you're not established. My own view is that it's not really a place to rely on heavy trade every night of the week; even in the peak season. It's 'Villa country' and this means people who've paid £1000s to rent for a couple of weeks are not going to visit the town every night; you pay that kind of money you're going to stay at the villa a few nights a week. Us, we stay in an apartment in Monte Carvoeiro and like to go out every night.

Golfers will give you good business in the March to May and Sept to early Nov. I'd imagine the winter months are very quiet.

And, of course, location, is likely to be key.

Good luck whatever you decide.

[EMM]

DON<T forget all the rules and regulation for doing business in Portugal.

[mysecondhome]

If you do get it up and running, keep the prices down and you will get more people in, often than not a number of bars charge high prices to make as much as they can during the busy months and customers feel they are not getting value for money.

[Lesley Jean]

Can I also say that if you don't speak Portuguese and German then you are already going to have problems. All the bars get tourists from Portugal, Germany, Holland, England, Spain and France... if you can't speak at least three of the above you will have problems keeping the business.

At your age it would be better to get a couple of years under your belt by working in bars in the area, learn the language and then see what you want to do. It is also very difficult for a Foreign national to start up a business here.