Business Structure for a pub

broc028

Hi all,

My partner and I are considering running a small country pub. It’s at the early stages at the minute, we are just beginning to look at finances and put together a business plan etc. While we both experienced in the catering industry, we are out of our depth when it comes to business. I realise that we need to side down with an advisor and discuss various issues but I have a quick question I would like to put up here and would welcome any opinions/feedback etc.

I am in a full time job which I would plan to keep, for a while a least.

What kind of company structure do bars typically operate under: sole trader/partnerships or limited companies? How does each affect the way money is withdrawn from the business in wages? We plan to hire minimal (if any) staff.


Also, (a beginners question here)Should the real estate agent be able to supply me with a copy of the business’s accounts for the previous X amount of years?


Thanks in advance.

Admor Tony

Business structure: I have seen sole trader, partnership and limited company structures all operating pubs. It is not so much the business sector that dictates the structure, rather there are other matters such as personal liability, tax, equity funding etc. An online search will give you a full list.

Withdrawals: This is a big topic and tax rates, payment dates, withdrawal options etc are different so you would be best getting advice from an accountant to suit your own individual circumstances.

Trading figures: Yes you should expect at least the last 3 full years trading figures and you should also request current trading figures - management accounts if available.

Two other quick points (1) don't forget to ask and be ready to challenge the reason for the sale and (2) without being overly negative, banks do not see small country pubs as a target sector, so bank funding will not be easy and your Business Plan will need to be pretty robust.......

Best of luck

The Dagda

broc028 wrote: »

Hi all,

My partner and I are considering running a small country pub. It’s at the early stages at the minute, we are just beginning to look at finances and put together a business plan etc. While we both experienced in the catering industry, we are out of our depth when it comes to business. I realise that we need to side down with an advisor and discuss various issues but I have a quick question I would like to put up here and would welcome any opinions/feedback etc.

I am in a full time job which I would plan to keep, for a while a least.

What kind of company structure do bars typically operate under: sole trader/partnerships or limited companies? How does each affect the way money is withdrawn from the business in wages? We plan to hire minimal (if any) staff.


Also, (a beginners question here)Should the real estate agent be able to supply me with a copy of the business’s accounts for the previous X amount of years?


Thanks in advance.

Are you looking to rent or buy?

There's no typical structure, it's whatever suits your particular situation. A good accountant with experience in the pub trade will advise on that.

A country pub is a very difficult place in which to make money at the minute.
I would not recommend anyone take on one unless they really believed they could make the premises the best pub in the area.
To do that would require a lot of experience, planning and most of all hard work, so it's really not something to go into lightly.

On the figures, if a pub is available it's most likely because it's not doing well.
In that case the figures are not going to make good reading so in my opinion they won't be of much help.

The only use of poor figures is to negotiate a low rent or low purchase price.