If you are planning a new restaurant initiative you should be aware that you will need a considerable plan or vision and be prepared accordingly before you even start out. New owners typically make the same mistakes and learn the hard way that this is not the easiest of businesses to be in.
Don't be tempted to run with that idea just because you think it would make the perfect restaurant initiative. You must look at everything in the cold light of day and prepare a comprehensive business plan. Certainly, these can be very difficult and time-consuming to put together, but it is at this stage that you should be seeking the advice of qualified professionals as money spent now is better than money wasted later if things don't work out for you.
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.
As in any business and definitely with your new restaurant initiative, cash flow will be king. Working capital will be required and don't forget that there will be a number of unforeseen circumstances that you will have to address. Put aside 10 to 15% of your capitalization towards these contingencies.
You can often turn to the experience of other restaurateurs to get a feel for direct operational costs, ideal cost of food and relative labor costs. Don't forget though that these are ideals and you'll almost never meet them within the first few months of operation. It will take time for you restaurant initiative to settle down into a pattern and only then will you be able to realize your ideals.
When you are setting out on your entrepreneurial path, it is common to take things all on board and keep them there. You must get others involved as it is not possible to operate as a one-man band. Your restaurant initiative should not be in your head, it should be on paper. Training policies and best procedures should be available and you should make sure the other key people in your organization are fully up to speed with them. Don't forget, that you will be absent due to travel or even illness from time to time and you will have to rely on others to keep your baby kicking.
Be prepared for any eventualities right from the start. Don't be tempted to rush into the opening of your restaurant, even though you may be anxious to get some money rolling in or to see your dream come true. Try a few soft openings with family or friends as this should help you to iron out any unforeseen problems. They will be there, so it's best for you to see them now.
Always seek guidance of professional advisors during the planning and implementation stage of your restaurant initiative. These will include not only bank managers, accountants, attorneys and code officials, but also dedicated restaurant marketing experts who have great input to bring to the table. - 30544
Don't be tempted to run with that idea just because you think it would make the perfect restaurant initiative. You must look at everything in the cold light of day and prepare a comprehensive business plan. Certainly, these can be very difficult and time-consuming to put together, but it is at this stage that you should be seeking the advice of qualified professionals as money spent now is better than money wasted later if things don't work out for you.
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.
As in any business and definitely with your new restaurant initiative, cash flow will be king. Working capital will be required and don't forget that there will be a number of unforeseen circumstances that you will have to address. Put aside 10 to 15% of your capitalization towards these contingencies.
You can often turn to the experience of other restaurateurs to get a feel for direct operational costs, ideal cost of food and relative labor costs. Don't forget though that these are ideals and you'll almost never meet them within the first few months of operation. It will take time for you restaurant initiative to settle down into a pattern and only then will you be able to realize your ideals.
When you are setting out on your entrepreneurial path, it is common to take things all on board and keep them there. You must get others involved as it is not possible to operate as a one-man band. Your restaurant initiative should not be in your head, it should be on paper. Training policies and best procedures should be available and you should make sure the other key people in your organization are fully up to speed with them. Don't forget, that you will be absent due to travel or even illness from time to time and you will have to rely on others to keep your baby kicking.
Be prepared for any eventualities right from the start. Don't be tempted to rush into the opening of your restaurant, even though you may be anxious to get some money rolling in or to see your dream come true. Try a few soft openings with family or friends as this should help you to iron out any unforeseen problems. They will be there, so it's best for you to see them now.
Always seek guidance of professional advisors during the planning and implementation stage of your restaurant initiative. These will include not only bank managers, accountants, attorneys and code officials, but also dedicated restaurant marketing experts who have great input to bring to the table. - 30544
About the Author:
Author Jose L Riesco teaches the most effective methods for getting more people into your restaurant at www.myrestaurantmarketing.com. Learn more about your restaurant initiative here.
