Consult licensees - and best of all get behind the bar - if you're considering a career in the pub trade. Doing your homework is vital to overcoming the many hurdles.
Thinking of buying a pub? Well, forget it unless you enjoy long hours, back-breaking work and are totally committed to taking on the many challenges and disasters the licensed trade will inevitably dump on your doorstep.
This is the blunt scenario a careers consultant might place in the path of any aspiring licensed-trade recruit enquiring about the prospects of a career behind the bar.
Finding the all-important first pub is one thing; putting everything in place to conclude a freehold sale or a lease agreement is another, and is an exercise that is likely to last many months.
It's like climbing a mountain - you think you know the right way up but frequently find your ascent littered with obstacles and disasters every step of the way.
In short, there is no easy way or short cut into the industry and you will find 101 aspects to consider, from germination of your initial idea to the day you pull your first pint.
Are you suited to pub life? And if so, what type of pub will suit you and your talents? Should the property be freehold, leasehold or do you start by becoming a manager?
Do you want to run a town pub, a village local, a community boozer, a country retreat, a beer house, a food pub, a music venue or some other speciality retail theme?
Qualifications, finance, training, location and brand knowledge are also basic considerations that must be addressed before you can even think about looking for the right premises.
Fortunately, in 2006, plenty of help and guidance is available, but any pub hopeful must take professional advice from the many trade groups and qualified advisers on hand. If lucky enough to find the right pub, you will quickly find there's still a long way to go. The really hard work starts here and now and there are many areas to cover before you are ready to greet your first customer.
Probably the best advice to anyone considering taking on a pub is to talk to someone in the trade first, and ideally "shadow" the licensees as they go around their daily business, says Colin Wellstead, Christie+Co national public houses and restaurants director.
"You will find it's not just about standing behind a bar serving drinks, taking food orders and generally playing host," he says. "There is cleaning, preparation for the day ahead, cellar work, accounts, paper work, staff and legal issues, which makes this a hard occupation."
However, if you are still keen to go ahead, deciding on the type of pub you want and determining the amount of capital required are the next steps, he advises.
For entrants with limited funds, becoming a pub manager could be the best way to get on the ladder.
But tenanted and leasehold opportunities are available from the major pub companies, providing a relatively low-cost entry into the trade.
At the top of the tree is the freehouse where the operator owns the property and business lock, stock and barrel. The scarcity of such businesses and the high cost of freehold purchase inevitably means this is an entry route that few can afford to take.
Wellstead says short-term tenancies, with entry costs as low as £10,000 or £25,000, are still popular, despite increasing numbers of pubs switching to longer leases.
Lease assignments with premiums of between £30,000 and £100,000 and more are the next rung on the ladder, followed by new leases, which often require capital expenditure and refurbishment, besides the usual fixtures and fittings.
20 steps to buying a pub
Christie+Co's Colin Wellstead offers the following advice:
l Think carefully whether the pub trade is suitable for you - do not act on impulse
l Decide on a location. There is a world of difference between a rural and city site
l Take advice from the experts and work in a pub first, if possible
l Work out from the start what you can afford to pay through a licensed property agent, finance broker, bank or accountant
l If you are selling your home to raise part of the capital, allow for delays in a sluggish property market
l Talk to a recognised trade finance specialist
l Listen to what they say, especially if they advise on a proposition that does not stand up
l Once you have the finance and the right pub in your mind start your search, but be warned - it could take a long time
l Read the trade press and speak to specialist agents
l Christie+Co can provide the latest technology and expert staff to help your search
l Obtain a selection of potential pubs that meet your criteria
l Do not buy the first pub you see. While it is in an agent's interest to achieve a quick sale, we do not want to see people disappointed
l Visit your target pub several times and at different trading times to see how it is operating
l If all seems well fix a meeting with the licensee to look around
l Take a close look at the surrounding area to size up the opposition
l Search for any potential problems locally such as a planned new road or bypass
l Now is the time to get to the legal side of the deal with the agents and professional advisers
l Go back to your financial specialist if a loan is needed
l Be prepared for a personal financial appraisal from your loan provider
l If all goes well and the pub is yours, be aware that this is a subject to study in its own right
Key issues to consider
Securing the correct finance arrangements and choosing a pub in a location that suits a buyer's particular retail skills, are two vital issues facing anyone looking for a new licensed-trade business.
Fleurets chartered surveyors associate director James Davies says that this ensures no time is wasted looking at properties outside your financial bracket or pubs that are not conducive to the style of operation you wish to run.
"Gaining experience in different styles of operation could be the key to helping you decide on the type of business you wish to operate.
"There are training courses in many different fields to help you decide and build up the necessary skills. The British Institute
of Innkeeping offers excellent information about how and where to gain this training.
"Once you have completed the above steps you can scour websites and the trade press
to identify your own style of operation in areas where you want to be at a price you
can afford," he adds.
For more information visit www.bii.org. class="bold">Organise your finances
Guidelines for buying a pub remain the same whether you are a first-timer or an experienced licensee, says Steve Sadler, director at Marlborough Leisure, the licensed and leisure financial experts.
"The biggest issue we face is convincing clients that the sum they need to borrow is above the leasehold or freehold value of the property," he says. "We advise a critical look at the work that is needed and the cost."
The tasks must be listed in order of importance and date to get a clearer idea of what sums need borrowing when, he says.
"Additional borrowing can be applied for at any point during the lease. We have been busy securing funds for our clients so they can make material changes to cope with the smoking ban, for instance," he adds. "However, our advice is to borrow realistically and plan for the worst-case scenario."