When to renovate your premises

More often than not, renovations are completed as a “catch up” to the standard of a local competitor. Knowing your market well and what your competitors are offering can assist in getting ahead of the game and positioning your venue as the market leader rather than following the local trend.

Remember your competitors are not just other licensed venues. Think about any other family entertainment centres in your vicinity.

It’s also important in the decision-making process not to saturate your area with a similar product, giving you the opportunity to position your venue as a unique offering with a competitive edge in the market.

Don’t limit yourself to just local competitors – branch out to the best venues in the state. If your bar is looking tired and you are looking for inspiration, implement ‘Best Practice’ by going to venues that are doing it well. Take ideas from clubs, pubs, cafés, restaurants and boutique bars and determine if the things that make them successful would work in your venue.

Equally important is to look at venues that aren’t performing well. Ask the question why aren’t they performing and ensure not to make a similar mistake in your renovations – if you think that their layout or decor is the problem.

Keep your eye on the cash flow situation.

Check Industry Averages from the ATO website (http://www.ato.gov.au/Business/Small-business-benchmarks), and act accordingly on expenses and margins.  If your venue is not meeting the averages for your turnover, you may have to raise your prices, as well as provide the customer service and food offering that this justifies.

If you would like more information on the topic of financial control, please email us