Mario Villegas Seattle - Most Common Mistake Made by Small Bars Restaurant Operator

1. Most Common Mistake Made by Small Bars Restaurant Operator
http://mariovillegasseattle.weebly.com/
1. Youstart your businessfor the wrong reasons by Mario VillegasSeattle
Whenyouopenyou firstbar thinkingthatyouwill make alotof money.Thinkthatopeningabar will
give youfreedomandmore time withyourfamily.Ormaybe because youare the bossyouwouldn't
have to answerto anyone else.If thisare the reasonforopeningabusiness,you'dbetterthinkagain.
On the otherhand,if you start yourbusinesswiththe full picture,you'll have abetterchance at
entrepreneurialsuccess:
 You have a passionandthe skill of aleaderforwhat you'll be doing,andhave done yourbusiness
plan-- basedon educatedstudyandinvestigation –Alsomake sure thatyourproductor service
wouldsatisfyareal needinthe marketplace.
 You are physicallyandmentallyfitandpossessthe endurance and staminatowithstandpotential
challenges.Oftencall inbusinessthe unknown,less-than-vigorous healthhasbeen cause formore
than a fewbankruptcies.
 You succeed onindependence,and youare skilledattakingcontrol andadapt quicklytochange
whenoutthe box or intelligentsolutionisneeded.Thisisespeciallyimportantwhenunderstrict
time constraints.
 You getalongwithand can manage all differenttypesof individualsandpersonalities
2. Poor Managementby Mario VillegasSeattle
The numberone reasonfor failure of new businessownersfrequentlylackrelevantbusinessand
managementexpertise inthe followingareas finance,purchasing,selling,production, hiringand
managingemployees.Unlessbusinessownerrecognize whatare theyweaknesses,andassemble ateam
of expertstoassistthem,businessownersmaysoonface disaster.Theymustalsobe educatedand
diligenttofraud,andputintoplace controls to avoidit.
Majorityof bar ownersgettooinvolve anddistractedwiththe operationof the businessandoverlook of
the continuingstudyof marketresearchandcustomerdata, an areawhichmay be more prone to
disregardonce a businesshasbeenestablished.
A successful managerisalsoagood leaderwho provide histeamwithcleardirectionsand
communicateseffectively.Also hasaskill at hiringcompetentpeople,trainingthemandisable to
delegate.
3. InsufficientCapital byMario VillegasSeattle
A commonfatal mistake formanyfailedbusinessesishaving inadequateoperatingfunds orreserve.
Businessownersunderestimatehowmuchmoneyisneeded tokeepthe doorsopenif the salesare slow
duringthe firstyearof operation andtheyare forcedto close before theyevenhave hadafairchance to

2. succeed. Anotherreasonforfailure isthey have anunrealisticoroveroptimisticexpectationof incoming
revenuesfromsales.
4. Location by Mario VillegasSeattle
Locationis critical tothe successof your bar. Generallybadlocationalways spell disastertoeventhe
best-corporate enterprise.
Some elementstoconsiderwhen selectingalocation
 Who are yourcustomers
 Foottraffic,accessibility,parkingandlighting
 Proximity of competitors
 Conditionandinfrastructure of building
 Tenantimprovements
 The historyof the neighborhood
5. Lack or Poor Planningby Mario VillegasSeattle
Most successful barsspendthe majorityof theirtime on careful,methodical,strategicplanning -- and
the hard work –Many small businessesfailbecause of lackandpoorbusinessplanning.
It isfundamental forall businessestohave a businessplanorat leastroadmap.
Highlevel ingredientsof abusinessplan mayinclude:
 Descriptionof the business,vision,goals,andkeystosuccess
 Numberof employeesneedittooperate the businesseffectivelyandcostof labor
 Riskplanning(potential problemsandsolutions)
 Financial:capital equipmentandsupplylist,balancesheet,income statementandcashflow analysis,
salesandexpense forecast
 Analysisof competition
 Marketing,advertisingandpromotional activities
 Budgetingandmanagingcompanygrowth