Starting and growing your own restaurant business is hard work and not without risks, but it is also an exciting and satisfying challenge and can give you a good income, providing you are prepared to invest a lot of time and energy into making it successful.
RECIPE FOR SUCCESS INGREDIENT CARDS
Ingredient 1: Start and Grow a Restaurant Business
Question:
How to start and grow a restaurant business?
Answer:
If you have decided to start and grow a restaurant, the next decision is to determine which business startup is right for you. You need to consider whether to start a new restaurant business or buy an existing one. Think about…
Starting up a new restaurant business
- What are the market demand and need for this product/service?
- Can a market be created?
- What is the level of competition?
- Is the market growing static or declining?
- What is the anticipated selling price?
- What are the costs involved
- to produce
- to operate
- to distribute
- to market?
- What could the business yield in terms of profit and is that sufficient reward?
- How much finance will be required and is it possible to acquire it?
- What legal requirements will apply?
- Is there any special experience or technical expertise required?
Buying an existing restaurant business
- Why do the existing owners wish to sell? Try to determine the real reason.
- Have you had experienced business friends look over the business?
- Have you looked at other similar businesses? How does this one compare?
- Have you assessed the competition?
- Is the business in a good location?
- Will the site, building, and lease be suitable for your future plans?
- Have you discussed the conditions of the lease with your solicitor?
- Have you investigated all the relevant laws in your state pertaining to this kind of business?
- Have you been given the statutory forms and trading figures for the past three years?
- Have you seen documentary evidence to support the trading figures you have been shown?
- Have you checked out the business with suppliers, customers, and staff?
- Have you checked the ownership and condition of the plant and equipment included in the sale?
- Have you checked the value of stock included in the sale?
- Is the figure asked for goodwill reasonable?
- Are you expected to take over any liabilities previously incurred?
- Will you need any additional equipment/fittings/renovations?
- Have you checked the availability of supplies and credit from existing supplies?
- Have you obtained a quote for insurance cover?
- Have you re-assessed the operating costs to reflect your way of running the business?
- Do you know how much money you need to borrow and is it available?
- Have you discussed all of the above with your accountant?
- Has he or she verified the accuracy of the figures you have been given?
Start and grow a restaurant business
The most important thing you should do when starting your restaurant business is to make sure you are well prepared.
Want to know more?
For a very low investment,
why not download a copy of our easy-to-read
‘How to Keep Within the Law’ eBook
and ensure your long-term success.
Method:
For a low investment:
- User-friendly eGuide – How to Keep Within the Law
- eventbrite.com Online Workshop: Restaurant, Cafe, Catering…VENTURE for new and existing hospitality owners (8 evenings Tues and Thursday or 4 Saturdays)
Free:
- eventbrite.com Free Webinar: Restaurant, Cafe, Catering…STARTUP
- Monthly ‘Recipe for Success’ Newsletter… news, trends, and ideas
- Recipe for Success Ingredient Cards …emails to answer your many questions
- FAQs
- BLOG Articles…you may be interested in reading:
RECIPE FOR SUCCESS
4 Ingredients:
Business – keep within the law
Marketing – increase sales, make more profit
Operations – controls to save time and money
Ideas – keep your customers coming back
Method: