The first and foremost thing is setting up a bar is to choose the best location. Many bartenders do not succeed not because of the poor quality of their bar, but because of the poor location of the bar. Location is the key to establishing a great business. A successful location for a bar is within the city entertainment area or in location that doesn't have any bars. It should be easily accessible too. In broad terms that's the secret, if you need to narrow your search for the best location, think what kind of a bar you will be opening. The specifics of your bar will give you the answer to the simple question "Where's the best spot for my bar?"
Furniture and equipment matters.
After you have rented a space for our bar, start decorating it. If you don't have a lot of money make basic redecoration and buy the minimum equipment needed. Once you start making money you can think about changing the bar decor or even setting up a themed bar. Get only the equipment and inventories you need at first hand and do not overspend as you will need to have some money left after the bar opens.
Decide on the menu.
The next important step in setting up a bar is the menu. Again - being on a tight budget means to offer the basic liquors and oft drinks. If you are going to offer cocktails make sure you know how to mix the ingredients professionally. Think carefully if you are going to offer food or only some kind of snacks. How to decide? Just look what the rest of the bars are doing and do the same. At this stage you do not need to break the business model but to start making a profit as fast as you can.
Make the world know about your bar.
Location helps but not as much as a good advertising. Think about cheap but effective ways for marketing of your bar. You can set up a simple website, print posters and give away flyers. A low cost and high effective way of marketing is the so called guerilla marketing. All you need is to ask some of your friends to go to lively places such as bus stops, cinemas, malls etc and to start arguing which is the best bar to go. People around them will hear their conversation and might decide to visit your place.
