Neighborhood cocktail bar

Local residents, after-work crowds, couples and groups of friends who pay per drink at the bar or table.

Selling cocktails at a price well above the cost of ingredients, with extra from beer, wine, non-alcoholic drinks and sometimes private bookings or events.

• Making consistent, well-balanced drinks
• Managing stock, costs and staff schedules
• Welcoming customers and handling difficult situations calmly

• Liquor license rules differ a lot by state and city, and some places limit the number of licenses, so check cost and wait times early
• Liquor liability and general liability insurance, plus workers' compensation once you hire
• Zoning, occupancy limits, fire code and health department rules, especially if you serve any food
• Check requirements for alcohol server training and your state's tipped-wage rules
• High fixed costs such as rent and payroll, and long hours late at night

Estimates suggest startup costs are typically around $100,000 to $500,000, depending on the location, build-out, equipment, liquor license costs and opening stock. Plan on at least 40 hours a week, often late at night.

Liquor license rules differ a lot by state and city, and some places limit license numbers, so check cost and wait times early. Also check liquor liability insurance, zoning, occupancy limits, fire code, health department rules, alcohol server training and tipped-wage rules.

Monthly revenue is typically around $25,000 to $120,000 by estimate, depending on location, opening hours and drink prices. High fixed costs such as rent and payroll mean revenue is only part of the picture. These are estimates, not guarantees.