The very first thing you should know about starting a new restaurant business is that most people with similar ambitions don’t quite realize the amount of work and preparation that goes into becoming a success.
Owning and operating a restaurant involves way more than simply having a few tasty recipes in mind or a good way with people, although both of these will definitely come in handy, so it’s imperative to have a full understanding of the industry and how it generally operates in order to stay afloat in this ever changing and competitive market.
There are actually a few different ways of launching a new restaurant business, each of which having their own potential pros and cons to thoroughly consider. Buying out a restaurant that has recently experienced some financial difficulties or filed for bankruptcy is one way of starting your business, and while this may be the least expensive method, it doesn’t come without its drawbacks, such as the ongoing reason for the lack of business or sales.
Or, there’s always the option of taking over an existing lease from the landlord and becoming the new proprietor while making renovations or changes that will increase business.
Starting a new restaurant business from the ground up is yet another option to consider and generally entails leasing or buying an empty space and transforming it into the restaurant you’ve always envisioned. As one might expect, this method of opening up a new restaurant will warrant substantial finances for the renovations, marketing expenses, supplies, and employee salaries, not to mention taxes, licenses, and any other zoning or regulatory fees that may be required.
Finding the money needed to start a new restaurant business is one of the first and most monumental obstacles faced by those interested in the prospect. Besides borrowing from banks, financing companies, credit unions, or similar lenders, you may be able to obtain a loan from the U.S. Small Business Administration, or use your credit cards, sell some of your equity, or even acquire help from outside investors if necessary.
If you already have a location in mind for your new restaurant business, make sure to do plenty of research before sealing the deal as most of your success will be dependent upon your location and whether or not it’s suitable for the type of cuisine you will be offering.
Conducting market research early on in the game is perhaps the best way of protecting your business in the future from becoming another dire statistic. Checking with your local Chamber of Commerce and doing some online research may be excellent starting points for determining the type of restaurants and businesses that are already in operation near you.
Next you will want to familiarize yourself with the equipment and inventory you will need in order to begin thinking about being ready for hungry customers. There are several types of suppliers you’ll soon be doing business with ranging from wholesale grocers to fresh produce suppliers to food service equipment dealers.
While the process of starting a new restaurant business is most often an arduous one filled with an incredible number of important details to tend to, the rewards of being a successful business owner far outweigh the initial work involved.