Staying in business in this economy is not easy for bar owners; neither is it a simple task for insurance agents who provide a sports bar insurance program to keep clients. Nonetheless, certain establishments have stood the test of time, drawing customers night after night, regardless of social distancing and economic inflation. Here are five reasons bars fail to survive while their competition thrives.
What causes a bar to fail? Unfortunately, it can be simple day-to-day business operations if your clients are unprepared to handle them. Some people dream of running a bar because they have an idealized image of what the job will be like. Asking the hard questions about liability issues and risk management might help owners to think more realistically. If they do not take your advice before opening, don't give up. After a few weeks of reality checks, they still may have time to turn things around.
Some bar owners are fixated on the physical appearance of their establishments. They may want to out-compete the other bars on the block or they may mistakenly believe that their facilities are the only things that customers care about. The secret of successful businesses is a human-centered approach. Instead of spending money on expensive new construction, bar owners should direct funds toward training and retaining quality staff.
Once owners have established a certain ambiance inside their bars, they may underestimate the disappointment customers feel when it disappears. Regular customers continue to visit their favorite bars because they provide predictable atmospheres that they enjoy. If they cannot rely on consistent temperature, lighting, and volume, then they are less likely to come back.
The kind of bar people want to open sometimes does not fit the demands of the area where they would like to run it. Extensive research is necessary to determine what a community wants and is willing to pay for. Another aspect people often neglect when doing preliminary studies is the local political climate, which can affect the bar's ability to obtain a liquor license.
Opening any type of business costs more money than inexperienced people realize. Once bills start adding up, many owners panic and consequently scrimp on crucial elements such as a good sports bar insurance program. Lack of insurance can then lead to eventual financial disaster.
These five conditions lead bars to close and force owners to suffer the financial and emotional consequences. As an insurance agent, you can help keep establishments open by offering real-world coverage that prevents devastating losses. While you may not feel comfortable offering actual business advice, you can at least help point owners toward a path where risks are mitigated.
At RMS and associated firms, business continues as usual. Our staff is remote-capable and available to handle all partners, brokers, and insureds at the present time.
