How to Start a Mobile Bartending Service

Start a mobile bartending service by following these 10 steps:

1. Plan your Mobile Bartending Service
2. Form your Mobile Bartending Service into a Legal Entity
3. Register your Mobile Bartending Service for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Mobile Bartending Service
6. Get the Necessary Permits & Licenses for your Mobile Bartending Service
7. Get Mobile Bartending Service Insurance
8. Define your Mobile Bartending Service Brand
9. Create your Mobile Bartending Service Website
10. Set up your Business Phone System

We have put together this simple guide to starting your mobile bartending service. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Mobile Bartending Service Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a mobile bartending service?

Once you have acquired the knowledge necessary to start your mobile bartending business, you’ll need to start building your inventory. While an office space is not required for success, there will be a great deal of equipment to store. For this reason, many business owners lease a space large enough to organize and store all supplies.

Once you have acquired your space, you can begin stocking the shelves:

• Mobile bars and tables - for outdoor events, consider investing in a mobile gazebo for shelter. Mobile bars range in price from $200 to $3,500. Consider investing in gently used items to reduce these initial costs.
• Glassware - $46 to $97 per case
• Napkins and table covers - $11 to $19 a piece
• Cocktail making equipment—shakers, strainers, muddlers, and speed pourers. Prices can range from $3 to $68.
• Reliable transportation for transporting supplies to events - for mobile marketing, invest in signage for your vehicle
• Insurance—speak with a trusted insurance professional regarding the type of coverage your business requires. Whenever alcohol is consumed, there’s a liability exposure.
• Marketing and literature—business cards and pamphlets describing your services
• Website

 

What are the ongoing expenses for a mobile bartending service?

Before an event, you will need to purchase alcohol, wine, mixers, and garnishes. In addition, your business will incur the following ongoing expenses:

• Payroll taxes—bartenders earn a minimum of $150/event, plus tips.
• Rent—should you decide to lease a building
• Utility costs
• Insurance—for the company vehicle and liability
• Marketing

Who is the target market?

Preferred clients include anyone who wants to host a private or public event that will include alcoholic beverages. Fortunately, birthdays, graduations, weddings, and fundraising events happen year round, ensuring your services will always be needed.

How does a mobile bartending service make money?

Mobile bartending companies generate revenue from the services they provide. Some customers will only require bartenders, while others will need the full service—drinks, glassware, mixers, etc.  Be sure to offer a variety of options for prospective clients to choose from.

How much can you charge customers?

This depends upon how you decide to structure your business. Some companies offer a variety of packages, with a basic one starting at $250 for fifty guests, not including the cost of drinks. Some bartending services don’t supply the alcohol, while others will only supply beer and wine. Be sure you carefully map out your policies prior to meeting with your first potential customer so that all expectations are clearly defined in advance.

How much profit can a mobile bartending service make?

While this varies, depending upon the services required of your client, a majority of mobile bartending businesses start out with an annual profit of $24,000-$41,000. After the three year mark, many have reported an annual profit of $76,000 or more.

How can you make your business more profitable?

Consider some of the below strategies for maximizing your profits:

• As part of your marketing strategy, concentrate on landing large clients who regularly host large events.
• Share your mixology knowledge by hosting classes or a blog. This could be online and/or in-person.
• Include catering snacks or food as an additional service.

 

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your mobile bartending service is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Businesses involved in the sale of alcoholic beverages are required to obtain a liquor license from the appropriate state or local agency.

• A comprehensive list of laws by state (including necessary licenses, zoning laws, etc), curated by the Alcohol and Tobacco Tax and Trade Bureau, can be found here.

If you sell food at your events, you may also need licensing from a local health department. Food establishments are randomly inspected by the local health department on a regular basis. These inspections will check for compliance with local health laws, typically related to prevention of food contamination.

Tips for faring well on a health inspections can be found here.

Service Agreement

Mobile bartending businesses should consider requiring clients to sign a services agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership. Here is an example of one such services agreement.

Recommended: Rocket Lawyer makes it easy to create a professional service agreement for your mobile bartending business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

Entrepreneurs experienced in the restaurant and bar industry who are looking to venture out on their own are best suited for this business endeavor. Mobile bartenders often work nights and weekends. This offers a more flexible work schedule, allowing you more time to focus on building your business during the week, and also spend time with family and friends.

What happens during a typical day at a mobile bartending service?

If you have spent any time in the service industry, you know that it is unpredictable. For many, this adds another layer of excitement, guaranteeing that no two days are alike.

As the owner of a mobile bartending business, you'll be tasked with the following activities:

• Field calls and questions from current and prospective clients.
• Speak with customers prior to the event to determine their vision and preferences, check out the venue, and note any guest allergies or sensitivities.
• Shop for any items needed for scheduled events.
• Schedule and/or hire bartenders for upcoming events.
• Plan drink “menu” and come up with ideas for specialty drinks based on your client’s preferences
• Arrive several hours early to set up the bar and get any special instructions.
• Bartend event.
• Clean up after event.
• Routine maintenance and clean up of vehicles used for transporting supplies.
• Marketing, networking, and administrative duties.
• Follow up with clients to receive feedback and ensure they received satisfactory service.

Many mobile bartending service owners opt to be the face of the business, leaving the actual bartending to their employees.

What are some skills and experiences that will help you build a successful mobile bartending service?

At first glance, building a profitable mobile bartending business sounds easy—you bring the requested items to the event and provide drinks to guests. No matter how large or small, however, events rarely go off without a hitch. Whether it’s a wedding or a fundraising event, your customer is looking to help turn their vision for this special day into a reality. Thus, it’s vital that you arrive on time and that every detail has been cared for. You will often be setting up in unfamiliar territory, or with a catering crew you haven't met, so adaptability and organization are essential.

In this industry, you will also be required to socialize with guests throughout the event. Most bartenders possess strong interpersonal skills, with the ability to interact with virtually anyone. It’s critical that you are professional at all times and help out whenever necessary, even if the task doesn't fit into your job description.

If you’re knowledgeable in the art of mixology, but haven’t ever worked in this field, consider working as a bartender or bar manager for at least a year. You will learn tricks and shortcuts, basic knowledge of how to run a bar efficiently and quickly, and get accustomed to standing for 8-12 hours at a time. Additionally, The National Bartenders Association and International Bartenders Association both offer members advice and resources regarding the latest trends, marketing support to help build your business, and advice on how to dream up your next signature drink.

What is the growth potential for a mobile bartending service?

Mobile bartending has realized significant growth in the last five years. With the industry poised for additional growth in the next decade, entrepreneurs have a good opportunity to achieve their growth goals. Many have found success offering franchise opportunities, while others are able to offer their services to multiple clients on any given night.