Costs, Wages, Employees, Money

Being able to estimate costs eliminates waste and theft. If the percentage of 'Costs of Goods' escalates, something is wrong. The average is 20%-30%. If it averages over 30%, most likely it's your fault. Maybe your prices are not in line with your services. Your employees can be extremely honest, but if you are not charging enough to pay the bills, you're at fault. Too many employers blame their employees, when the employees have nothing to do with it. Maybe your employees are over-pouring, using bar materials for their personal use, not following your business format,or perhaps, stealing in some way, but most likely, it's something you are or aren't doing.

If any figure in your profit and Loss Statement changes dramatically, somthing is wrong. 'Costs of Goods' is the most important number, and 'Sales' is next.

A word on wages: if you don't pay a person a living wage for the area you live in, expect theft. If you pay $3.35 an hour, where the general populous averages $10.00 an hour, expect theft. Most of the time, it's just food, soda, etc., but if a person can't live on what you pay them, what can they do, but steal. No one is to blame, but you, the employer. If you can't afford to hire help, do it yourself. If you don't pay a living wage, expect to work more and more yourself, because you won't be able to trust anyone. Everyone you hire will have to steal from you to make a living wage. KEEP IN MIND: most good bar owners are not good employees, and most good employees are not good bar owners.

A word on employees: innovative employees are hard to find and should be encouraged. If a suggestion is proffered by an employee, don't dismiss it, consider it! The employee knows the clientele when he works, you don't. If they are convinced their idea will increase business and 'Sales', try it. Give every new idea 6 months to be profitable, a FULL 6 months. Very few things work in a month or two; give it a fair chance to work. If you have a new employee, who thinks something will work for them, when it hasn't for some other employee, try it, this might be the employee to pull it off. If it is successful, by all means give the employee a raise in salary. Be fair, after all, you'll be making money of their ideas, initiative and incentive.

Money is only a motivator until a person has enough, then it's power, and a title is power. When you have someone who is promotable, delegate some responsibility. If you promote from within, your employees are loyal to you, and they understand that what is good for you, is good for them, You will have more free time for other pursuits. Gradually, delegate as much responsibility as is profitable to delegate. When the employee has mastered one phase of the operation of your business, delegate another responsibility until either all phases of the business have been mastered and he or she can run the business by themselves at a profit for you, or until they become bored and uncreative with the whole business.