Whenever you set out to unveil a restaurant initiative you must have done your homework and be prepared to see the bigger picture. This type of business is not the easiest and a lot of owners make critical and fundamental mistakes at the beginning. This is probably the most crucial time for you.
Think twice before you run with your restaurant initiative -- are you sure it will work? You will need a very well-prepared business plan and be prepared to take a cold, hard look at everything. The business plan can be a big chore to put together but you should definitely plan to tap the brains of some qualified professionals at this point. Money spent now is a great investment for later.
Location, location, location. Your friends in real estate will repeat this often heard mantra to you and you should listen. Your new restaurant initiative will be based on a selected location, which should be itemized and projected in your business plan. Do not be tempted to compromise if you're under pressure to do so, as the alternative location may prove to be your downfall.
When planning your funding, never underestimate cash flow requirements. In addition you must have a sufficient amount of working capital as no matter what the restaurant initiative, there will always be unforeseen circumstances. Be prepared for this eventuality by allocating at least 10 to 15% of your capitalization to contingencies.
If you seek out they help, those who have been in the restaurant business for a while will be only too pleased to give you an idea of direct operating costs, labor input and the ideal cost of food for your restaurant initiative. Always take these with a pinch of salt, however and never rely on them, especially during your first few months in business as everything and everyone will be finding their feet and it will take time for you to settle down into a regular pattern.
It is common for self-employed people to be so engrossed in what they are doing that they keep everything in their head. Don't forget that you will have to rely on other people as time goes by and you should make sure that your best policies and procedures are set out in a training manual and kept in a key place. From time to time, you will be absent from the business due to illness or other travel commitments and you will have to rely on others within your organization to make sure that the business is operating efficiently.
When you are almost ready to open your restaurant, it is tempting to fire away as you will be anxious to see your dream coming true and get some much-needed cash coming into the bank. Expect there to be many unforeseen problems, however and you should not rush to open before you are absolutely ready. Try some soft openings and invite friends and family along to see what will go wrong. This will be a great help now, rather than when you have paying customers at your tables.
Turn to others for advice and look for a variety of professional advisors during the early stages of your restaurant initiative. You will need input from code officials, bank managers, bookkeepers and legal advisers, but you should also consult dedicated restaurant marketing people who will have the best input for you. - 30543
Think twice before you run with your restaurant initiative -- are you sure it will work? You will need a very well-prepared business plan and be prepared to take a cold, hard look at everything. The business plan can be a big chore to put together but you should definitely plan to tap the brains of some qualified professionals at this point. Money spent now is a great investment for later.
Location, location, location. Your friends in real estate will repeat this often heard mantra to you and you should listen. Your new restaurant initiative will be based on a selected location, which should be itemized and projected in your business plan. Do not be tempted to compromise if you're under pressure to do so, as the alternative location may prove to be your downfall.
When planning your funding, never underestimate cash flow requirements. In addition you must have a sufficient amount of working capital as no matter what the restaurant initiative, there will always be unforeseen circumstances. Be prepared for this eventuality by allocating at least 10 to 15% of your capitalization to contingencies.
If you seek out they help, those who have been in the restaurant business for a while will be only too pleased to give you an idea of direct operating costs, labor input and the ideal cost of food for your restaurant initiative. Always take these with a pinch of salt, however and never rely on them, especially during your first few months in business as everything and everyone will be finding their feet and it will take time for you to settle down into a regular pattern.
It is common for self-employed people to be so engrossed in what they are doing that they keep everything in their head. Don't forget that you will have to rely on other people as time goes by and you should make sure that your best policies and procedures are set out in a training manual and kept in a key place. From time to time, you will be absent from the business due to illness or other travel commitments and you will have to rely on others within your organization to make sure that the business is operating efficiently.
When you are almost ready to open your restaurant, it is tempting to fire away as you will be anxious to see your dream coming true and get some much-needed cash coming into the bank. Expect there to be many unforeseen problems, however and you should not rush to open before you are absolutely ready. Try some soft openings and invite friends and family along to see what will go wrong. This will be a great help now, rather than when you have paying customers at your tables.
Turn to others for advice and look for a variety of professional advisors during the early stages of your restaurant initiative. You will need input from code officials, bank managers, bookkeepers and legal advisers, but you should also consult dedicated restaurant marketing people who will have the best input for you. - 30543
About the Author:
Expert Jose L Riesco shows you the most effective methods for getting more people into your restaurant at www.myrestaurantmarketing.com. Find out your restaurant initiative here.
