How to Open a Bar With No Money: 7 Real Ways to Fund It

Can you open a bar with no money? Not with zero dollars, but you can open one with very little of your own cash. The way to open a bar with no money is to fund it with other people’s money and shrink what you need to raise: take over an existing bar instead of building one, bring in partners, use an SBA loan or microloan, lease the space and equipment, and start with a smaller license and a lean back bar. This guide walks through each path, what it really costs you, and a 30-day plan to get moving.

If you haven’t priced out a bar yet, read how much it costs to open a bar first. Everything below is about closing the gap between that number and what’s in your bank account.

What “no money” really means when you open a bar

Here’s the honest starting point. Homebase puts the cost to open a bar at $174,000 to $850,000, with most owners spending around $425,500. Here’s where that money typically goes:

Source: Homebase. Your city, state and space will move every line.

So “no money” really means two things you can control:

• Need less. Every dollar you don’t have to spend is a dollar you don’t have to raise.
• Use other people’s money. Lenders, partners, sellers, landlords and equipment companies can all carry part of the load.

Most new bar owners who start with little cash use both at once. Here are the seven paths that do the heavy lifting.

7 ways to open a bar with no money (or close to it)

1. Take over an existing bar instead of building one

This is the biggest lever you have. A bar that’s already built out has the bar top, coolers, plumbing and often the layout you need. Homebase says turnkey operations can start at $25,000 to $50,000 and estimates buying an existing bar can save $100,000 to $300,000 compared with building from scratch (Homebase).

Two things to check before you get excited:

• The license. Whether an existing liquor license can move to a new owner depends on your state. Ask your state alcohol agency early.
• The books. Toast’s guide to buying a bar says lenders will want balance sheets, cash flow statements, income statements and tax returns, and that you should confirm the bar’s licenses and permits are current.

Also ask the seller if they’d carry part of the price as a note you pay back over time. Some sellers will, some won’t, but it costs nothing to ask and it can shrink what you need up front.

2. Bring in partners or investors

If you have the skills and the plan but not the cash, a money partner can fill the gap. The trade is ownership. The SBA puts it plainly: be prepared to “give up some portion of both control and ownership of your company in exchange for funding.”

Tips that keep partnerships healthy:

• Put roles in writing. Who runs the floor, who signs checks, who decides on hires.
• Agree on how and when partners get paid back before anyone writes a check.
• Pick a business structure that fits a multi-owner bar, and have a lawyer draft the operating agreement.

3. Use an SBA 7(a) loan for the big pieces

SBA 7(a) loans go up to $5 million and can cover real estate, renovations, equipment, furniture, working capital and even buying an existing business (SBA). You need to be creditworthy and show a reasonable ability to repay.

Here’s the catch for “no money” plans: under the SBA’s current rules (SOP 50 10 8, effective June 1, 2025), the minimum equity injection is 10% for startup businesses and complete changes of ownership (Live Oak Bank). So on a $300,000 project, plan on bringing about $30,000 yourself. That’s the math, not a quote. Your lender sets the final terms.

4. Start with an SBA microloan

If your plan is small, like a neighborhood bar in a space that’s already built out, a microloan might cover the gap. SBA microloans go up to $50,000, the average is about $13,000, and the maximum term is six years. They can pay for working capital, inventory, furniture, fixtures and equipment, but not real estate or existing debts (SBA).

5. Lease the space and the equipment

Buying a building ties up money you don’t have. Homebase points out that leasing the space takes far less up-front capital, and leasing big-ticket equipment keeps cash free for working capital (Homebase). A few more ways to cut what you need:

• Buy used. Used refrigeration and ice machines can run 40% to 60% less than new (Homebase). Budget for freight, setup and repairs, which Toast flags as easy to miss.
• Negotiate the lease. Ask for a tenant improvement allowance, a few months of free rent, or lower rent in year one (Homebase).

6. Start smaller: license and back bar

Your liquor license can be your biggest single cost, and it varies a lot by state. In California, a general priority license carries a $19,840 fee, while most new non-general licenses carry a $1,135 application fee (Toast). Two ways to start lighter:

• Beer and wine first. Homebase says a beer and wine license costs significantly less than a full liquor license and could save $5,000 to $50,000. Check what your state offers.
• A lean back bar. Stocking about 80 core products instead of 200 keeps cash out of slow sellers (Homebase). Price every drink with our free pour cost calculator so the lean menu still makes money.

7. Crowdfund from your community

A neighborhood bar has something most businesses don’t: regulars before it even opens. Two flavors:

• Rewards crowdfunding. Backers get a perk, like a founding-member mug or a first-round tab. The SBA notes crowdfunders generally don’t get ownership, and if the plan fails you typically don’t owe them repayment (SBA).
• Investment crowdfunding. Under Regulation Crowdfunding, a company can raise up to $5 million in 12 months, and the offering has to run through a broker-dealer or funding portal registered with the SEC and FINRA (SEC). Get a lawyer involved for this one.

A sample funding stack for a small bar

Here’s how the pieces can fit together. This is a made-up example to show the math, not a quote or a promise. Swap in your own numbers.

If $25,000 is still out of reach, a partner can bring the cash in exchange for a share of ownership, or you can shrink the project. Ask your lender how they treat outside equity before you build the plan around it.

The work here is real: a cost budget, a business plan a lender will read, a license plan for your state. That’s a lot to piece together from scratch.

What lenders and investors want to see

When you’re asking for other people’s money, your paperwork does the talking. The SBA suggests having three things ready before you apply for a loan:

• A business plan that explains the concept, the location and why people will come.
• An expense sheet showing what it costs to open and run the bar.
• Five-year financial projections for sales, costs and profit.

Not sure what a bar can earn? Our breakdown of how much bar owners make shows the sales-times-margin math you’ll use in your projections. You can also model the full build with the free bar startup cost calculator.

Mistakes to avoid when money is tight

• Skipping working capital. Homebase puts working capital at $50,000 to $100,000. Opening with nothing left for slow weeks is a hard way to start.
• Draining retirement savings. The SBA warns against spending more than you can afford, especially from retirement accounts.
• Signing a lease before you know the license path. Confirm what license you can get for that address, and roughly how long it takes, before you commit to rent.
• Handshake partnerships. Write down roles, ownership and payback terms. It protects the friendship and the bar.

Your 30-day plan to open a bar with no money

1. Week 1: Pick your format and run a rough budget. Use the bar startup cost calculator and decide whether you’re building out or taking over.
2. Week 2: Call your state alcohol agency. Ask which licenses fit your concept, what they cost and whether a license can transfer with an existing bar.
3. Week 2: Tour two or three bars for sale or lease. Ask sellers about carrying part of the price and landlords about free rent or a build-out allowance.
4. Week 3: Write your business plan and five-year projections.
5. Week 4: Talk to two or three SBA lenders and any potential partners. Bring the plan, the budget and your funding stack.

Want the step-by-step version for a neighborhood spot? Read how to open a small bar.

Want a head start? Grab the free Bar Starter Kit below.

FAQ

Can you really open a bar with no money?

Not with zero dollars, but you can open one with very little of your own. Most low-cash owners combine a few paths: taking over an existing bar, bringing in a partner, using an SBA loan or microloan, leasing space and equipment, and starting with a smaller license.

How much money do I need to open a bar?

Homebase puts the total at $174,000 to $850,000, with most owners spending around $425,500. Taking over a built-out bar, leasing and buying used equipment can bring that down a lot.

Can I get an SBA loan to open a bar with no money down?

Usually not. Under the SBA’s current rules (SOP 50 10 8), startups need a minimum 10% equity injection. A partner’s cash or a smaller project can help you reach it. Your lender sets the final terms.

What’s the cheapest way to open a bar?

Taking over an existing bar is often the cheapest. Homebase says turnkey bars can start at $25,000 to $50,000 and buying existing can save $100,000 to $300,000 versus building from scratch. A beer and wine license instead of a full liquor license can also save money where your state allows it.

How do I find investors for a bar?

Start with people who already believe in you: former bosses, regulars, friends in the industry. Bring a business plan, a startup budget and clear terms for ownership and payback. The SBA notes investors usually expect a share of ownership and some control in return.