What does it take to open a restaurant (not franchised)?
My two roommates and I are thinking about going into business together by openning our very own restaurant. We are three college students (junior/senior) who have diverse skills which include myself as a Economics/Finance major, roommate 1 majors in Restaurant/Hotel Management, and roommate 2 majors in Management and currently manages a restaurant while he is in school. We all currently hold part-time jobs in restaurants and have a good sense on how they operate. Roommate 2 and i are amatuer investors with about 50K (and growing) invested into the money market. We don't know all the permits and licenses required to open one. Also how would we finance the place, what kind of loans should we consider and how could the government help us out with this? Thank You so much if you can help us out with this.
Public Comments
- Go to http://www.score.org/template_gallery.html and download the Excel template for estimating start up costs. There are no grants for a for profit business unless you are opening a daycare. If you need money, you will need to apply for a loan. No lender will talk to you unless you provide them with a valid business plan. Go to http://www.sba.gov , http://www.score.org or http://www.bplan.com for sample business plans and instructions on how to write a business plan. Then, go to http://www.score.org/index.html and in the upper left hand corner, enter your zip code. On the next screen, you will get information on the nearest SCORE chapter. Call them and arrange for a free meeting with a SCORE counselor to review your business plan and discuss various loan options available to you. SCORE is a nonprofit association dedicated to entrepreneur education and the formation, growth and success of small business nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA). SCORE has 389 chapters in locations throughout the United States and its territories, with 10,500 volunteers nationwide. Both working and retired executives and business owners donate time and expertise as business counselors.
- I used to own a restaurant so I can offer you some advice even if it's not exactly what you're asking about. First of all, it's hard work; probably much more than you would expect. Furnaces break, taxes and government policies can change, and costumers can be very demanding. Do what ever you can to simplify your life so that you can focus on your business when these unexpected little things crop up. Keep your menu small and only sell what's popular and easy to prepare. Only open when you're at your busiest. If the lunch crowd brings in less money that in takes to pay staff, just open up for dinner. If Monday is your slowest day, close on Mondays and spend that time shopping, fixing things and balancing the books. Listen to your customers and stay on top of trends. Always give your customers what they're asking for, not what you think they want. Don't spend money you don't have to spend. If you think the place would look so much better with a new renovations and fancy things, you may end up spending money that you'll need down the road to stay open. Start with as little operating costs as possible, even if that means cash only and no delivery. Slowly, as you grow your business you can start adding these things. If you think this could inconvenience your customers, make up for it with great food and top notch customer service (it's much cheaper!) Hire hot chicks (especially if you're in a college/university area. Good luck!
- I have a delivery take out restaurant that I started from scratch it is 800 sq. ft. and it cost with equipment 40k. It is a tough business. Do your homework
- t's a sexy idea--until you realize how hard starting a restaurant really is. Soon enough, questions will be flying like grains of sea salt. What permits do you need? What are your start-up costs? Where should you buy your produce? What corporate structure should you choose? In other words, you need to know the fundamentals. Here are tips on everything from legal structure, to role models to start-up costs: http://www.forbes.com/entrepreneurs/2007/02/02/small-business-restaurant-ent-manage-cx_bn_0202fundamentals_lander.html
