Neighborhood bar

Local residents, after-work crowds, friend groups and people attending nearby events.

Customers pay per drink. Margins come from pricing, controlling pours and waste, and keeping seats busy on slower nights with events or specials.

• Customer service and hosting
• Managing stock, costs and staff schedules
• Handling difficult situations calmly

• Liquor license rules, costs and waiting times vary hugely by state and city, and some places limit how many licenses exist
• Check zoning, occupancy limits and any local rules on hours and noise before signing a lease
• Liquor liability and general liability insurance, and your state's rules on serving intoxicated guests
• Workers' compensation insurance and tipped wage rules once you hire staff
• If you serve food beyond packaged snacks, you will likely need a health department permit
• Long evening and weekend hours, and high upfront costs for build-out and licensing

Startup costs are typically around $120,000 to $500,000, depending on your space, build-out and licensing. Upfront costs for build-out and licensing are high, so treat these estimates as a starting point for your own budget.

Monthly revenue is typically around $25,000 to $120,000, depending on location, hours and how many regulars you build. That is revenue, not profit, and only an estimate. Plan for at least 40 hours a week, including evenings and weekends.

Liquor license rules, costs and waiting times vary hugely by state and city, so check yours first. Also check zoning, occupancy limits, hours and noise rules, liquor liability insurance, and whether you need a health department permit if serving food.