Take over an existing licensed lounge bar

The existing local customer base: regulars, groups, after-work crowds and weekend visitors, plus new customers you attract.

Customers pay per drink and snack. You start with existing sales, so the work is protecting margins, keeping regulars and improving what is not working.

• Reading financial statements
• Hospitality and team management
• Negotiating a purchase and lease
• Customer service

• Liquor licences may not transfer automatically, so check with your provincial regulator before committing money
• Hidden problems such as overstated sales, equipment needing replacement, debts or a short or expensive lease, so use a lawyer and accountant
• Existing staff contracts and what you take on if you hire them (WCB/WSIB and employment rules vary by province)
• Commercial general liability and liquor liability insurance in your own name
• Music licensing fees (for example SOCAN and Re:Sound) and food permit requirements from your public health unit
• Quebec has its own licensing and French-language rules, so check them if you are there
• Regulars may leave if you change too much too fast

Startup costs are typically estimated at around $120,000 to $400,000, depending on the asking price, the lease, the state of the equipment and any refresh you plan. These are estimates, so use a lawyer and accountant to check the real figures.

Monthly revenue is typically estimated at around $40,000 to $120,000, depending on the existing customer base and how well you keep regulars. Check the seller's financial records carefully, as sales can be overstated.

Check whether the liquor licence transfers with your provincial regulator before committing money. Also check for overstated sales, equipment needing replacement, debts, lease terms, staff contracts, insurance in your name, music licensing and food permits. Quebec has its own rules.