The Pub

The purpose of this section is to give the reader an understanding of the type of pub you are intending to run. You need to describe the pub and the facilities that it has available and whether the pub is tenancy, lease or freehold. You should explain what type of clientele the pub attracts, where it comes from and why it uses the pub. A potted history of the pub’s recent past may be useful too. Turnover, barrelage figures and rent, if applicable, can be included in this section. You can often find some of this information in the particulars that breweries, pub companies and business agents send out, for pubs that are to let or for sale.

You must give an honest assessment of the pub’s strengths and weaknesses. It is important to demonstrate that you have taken time to look at the pub objectively and considered both its positive and negative aspects. You should show how you can maximise the pub’s strengths and manage or overcome its weaknesses.

The Environment

This section can include both the micro environment in which the pub operates and the macro environment, ie the wider influences that may affect the business. An example of a pub’s micro environment would be its catchment area, including local housing, competitors and other businesses. A pub’s macro environment includes the social, economic, political and legal issues that may affect the business. Examples of these would be growing trends to eat out (social) or smoking bans in public places (legal). A good source of macro environmental issues is the trade press, which often covers these and explains how they will impact on the licensed trade.

It is important to understand how changes to both the micro and macro environments may affect your business. These changes can be positive or negative and should have been identified in your SWOT analysis as opportunities and threats. Some areas to monitor are:

• competitors;
• the building and development of properties;
• changes to road systems;
• local employment issues;
• new businesses;
• alternative leisure businesses.

 

The local press, council offices and the public library are good places to gather this type of information.

Your Plans To Develop The Business

You should have a plan on how you aim to develop the business by building on existing strengths and exploiting any opportunities that are available. The overall objective is to earn more profit, and in simple terms, this is done by increasing turnover and/or cutting costs. Examples of ways to develop the business can include:

 

• food, or further increasing the food trade;
• accommodation;
• new products;
• new facilities;
• new income streams;
• promoting high-profit margin products;
• increasing gross-profit margins;
• more efficient purchasing arrangements;
• encouraging new customers to use the pub;

• encouraging existing clientele to spend more;
• better cost control;
• reducing wastage.

 

Your development plan should have clearly set objectives. These should follow the SMART acronym and be:

S	Specific (exactly what you are intending to do)
M	Measurable (what you aim to achieve in money terms)
A	Achievable (how you are capable of achieving it)
R	Realistic (whether you have the resources to succeed)
T	Time based (exactly when you want to achieve it)

Set a SMART objective for each of your development ideas against which you can track your progress.