In the U.S. alone, 64% of small business owners start out with only $10,000 in capital. Out of the small businesses in the U.S., only about 40% are profitable.
If you’re thinking of starting a restaurant, you might wonder how to get started. While starting a restaurant might seem tough, there’s hope.
This article will go over the different tips and actions that you can follow to create your dream restaurant. Read on to explore these tips and actions in order to make your dreams a reality today.
1. Pick Your Niche
When you’re opening a restaurant, you’ll first need to decide what kind of cuisine or service you’ll offer. Take a look at different restaurants out there, do you see anything missing that you can offer?
2. Have a Plan
You’ll need to have a business plan before you open up. This will take into account your budget, dream restaurant location, etc.
Think about your target market, this is who will be coming to your restaurant. You’ll want to keep them in mind when you think about the location, design, offerings, marketing, etc.
Take a look at your competitors and see what they’re doing. Think about how you can stand out from the sea of restaurants out there.
Write down the different equipment you’ll need such as a commercial freezer temperature alarm. Think about your budget and how long it’ll take you to see a profit from your business.
You’ll also need to think about the staff as well, how many workers you’ll need to hire. Take your budget into account when you’re thinking of what you’ll need to buy. Keep your goal in mind whether it’s to have a long-term business or one that you can build and then sell.
3. Research Funding
Once you have an idea of operational and startup costs, you’ll want to determine how you’ll fund your restaurant. Consider applying for a business loan either online or in-person at a bank or credit union.
You can also find investors online. You’ll let them know your idea, and they’ll decide whether or not they’ll help you. Reach out to family and friends to see if they know anyone who might be able to help.
4. Obtain Licenses
You’ll need to look into the different permits and business licenses that are required. When you want to run a restaurant, each area will have different requirements.
5. Register Your Business
You’ll need to register your business with the IRS to have an EIN (Employer Identification Number). This is what you’ll need to keep track of when you file taxes.
You’ll also want to consider the name of your business, and make sure that it’s available. Decide what business designation is right for you whether you choose an LLC, Corporation, etc.
6. Consider Food Trucks
If you’re short of money and want to avoid large loans, you can consider a food truck or other pop-up. A catering business is an option as well.
Pop-up restaurants are where you have a temporary restaurant in a space. It’s a way to try out your restaurant at a mini-level before investing too much.
7. Consider Your Experience
While you might be great at restaurant management, you might not know about marketing. Write down your strengths and weaknesses before hiring workers.
If you’re looking to limit how many you hire, you can gain the experience and knowledge necessary online or in classes. If you don’t, you might be putting your business at risk. Consider having a restaurant mentor with who you can bounce off ideas with.
8. Location
Consider your target audience when picking out your location. Take a look at the restaurants that close around you due to the stiff competition.
Take a look at different locations and see what’s in the area, and what the audience in that area looks like. Consider the accessibility as well.
If you’re a larger restaurant, you’ll want to make sure that it has the parking spaces necessary. Consider your budget as well when you factor in the different fees of gas, water, sewer, power, etc.
9. Create Your Menu
Keep your target audience in mind as you create your menu. Think about what items you’ll feature such as specials of the day, etc.
Your menu will also let you know what type of equipment you’ll need for your business. If you’re in a college town, consider having items that college kids will like.
10. Advertising
When you’re first opening a restaurant, it’s important to get your name out there. First, build your website.
Make sure that it’s easy to navigate and has a way for potential customers to get in contact with you. Have your phone number, hours, menu, and address on your website.
Consider using social media to let others know about your business. You can consider having monthly deals and specials as well. When you’re first starting, you’ll want to entice potential customers with different coupons such as free desserts, discounts, etc.
Try having a grand opening to create excitement around your new restaurant. You can also consider having live music, cooking classes, wine or dessert tastings, etc.
In order to try things out, you can have a practice opening. This is where you can limit the schedule and have a trial menu. Consider only opening it to friends and family so it’s less stressful.
Your Guide To Starting a Restaurant
Now that you’ve explored this guide on starting a restaurant, you should have a better idea of what to expect. Would you like to read more business content? For everything from business to technology, check out our other articles today.