Neighbourhood cocktail bar

Local residents, couples, friends on a night out, office workers after work and people booking tables for small celebrations.

Selling drinks at a margin well above ingredient cost. Extra income can come from bar snacks, private bookings, tasting nights and themed events.

• Cocktail making and drinks knowledge
• Customer service and hosting
• Managing stock, costs and staff rotas

• A premises licence is needed to sell alcohol, and you need a personal licence holder as designated premises supervisor (England and Wales; check the rules in Scotland and Northern Ireland)
• Check planning permission, the lease terms and whether the unit has a suitable use class
• Public liability insurance, employer's liability insurance once you hire, and contents cover
• Register as a food business with your council if you serve food, and check your food hygiene obligations
• Late hours can affect neighbours, so check noise rules and licensing conditions
• Rent, fit-out costs and quiet weeknights can put pressure on cash flow

Startup costs are typically around £40,000 to £150,000, depending on the premises, fit-out and stock. Rent, fit-out costs and quiet weeknights can put pressure on cash flow, so build a cushion into your plan.

Monthly revenue is typically around £12,000 to £50,000, depending on location, opening hours and how busy you are on weeknights. This is an estimate of turnover, so subtract rent, stock and staff costs to see what is left.

A premises licence is needed to sell alcohol, and you need a personal licence holder as designated premises supervisor (England and Wales; check the rules in Scotland and Northern Ireland). Also check planning permission, lease terms and use class, and food business registration if you serve food.