Top tips for first-time landlords

Hand holding beer

It's a new year and that means new beginnings! Here are three great tips to help you launch a pub in 2015...

Start afresh

When Jeff Brown took over the Blue Bell in Kip Hill six months ago, he received a lukewarm welcome from the local residents loyal to the previous landlords. Jeff’s response was to try to attract a different crowd. “Instead of the ‘ready-intwo-minutes’ microwave meals, we focused on turning the pub into a gourmet burger and traditional food restaurant,” he explains. Jeff turned a problem into an opportunity by having the courage to innovate. “We now have 10 to 12 burgers on the menu at any one time and we use locally sourced products in our dishes,” he adds. The new approach has attracted a much younger crowd who tend to spend more money on drinks.

Consider a start-up loan

If you can’t raise the capital to kick-start your new business then a government-backed loan may be the answer. The Start Up Loans scheme provides finance at low interest rates for entrepreneurs, with the backing of 30 diverse delivery partners. Applicants can borrow up to £9,900 over a maximum term of 60 months and no collateral is required. Find out more about the scheme at www.startuploans.co.uk.

FeatureFocus on yield

One of the key factors influencing profitability is yield - the proportion of purchased stock you manage to subsequently sell on. Pubs that make a profit tend to have yield of at least 97.5%, while loss-making pubs average yields of under 93%. Increases in yield mean bigger profits, making this an important area for first-time landlords.