Restaurant Business Plan: How to Start a Restaurant
If you love good food and equally love to share it with other people, and you have also got some experience working in a restaurant, then starting a Restaurant Business might just be the right business for you.
Humans must feed and lots of people love good food. This means the restaurant business will always prove profitable any day.
You will always get patronized, provided the business is well located and you serve high quality foods, impressive varieties and at affordable rate.
You need to get it right from the beginning in order to make headway in the business. Set up is not so difficult and you can always start small if you do not have huge capital to start big.
You can then grow big with time. What must you do to succeed in this business? What are the very important things you must keep in mind while starting out to ensure your effort does not hit the rock?
This post will open your eyes to the secrets of success in the restaurant business.
How to start a restaurant business: steps to take
If you are thinking of starting a restaurant business, here are the steps to take to help you set it up successfully:
Write a business plan (see samples to guide you)
Writing a plan for your restaurant business is important. It is your roadmap and guideline to a successful business.
It will guide your step on what to do at any particular time. It will redirect you when you are going out of your original business goal.
It will show you where you are at any particular time and direct you on the next step to take.
It will also help you to obtain financing to meet with your future expansion plans. The benefits of the restaurant business plan are listed below:
- It will help in creating blueprint for successful operation of the restaurant.
- You will not need to plan on the go; all would have been taken care of in the business plan for you to focus on execution.
- Your prospective employees will have more respect for your business and will have more confidence in it.
- Your prospective managers too will be compelled to believe in your business concept.
- It will enable you obtain lease space, get bank loan, and acquire investment capital very easily.
If you need assistance in writing a business plan, you can make use of professionally written samples to guide you through the process.
Financing for the business
The amount needed to establish restaurant business is largely determined by how big you want the business to be.
Other factors determining how much is needed to start the business are:
- Decoration and
- Style of service.
Land, building, and kitchen equipment equally contribute to how much is required as start up capital for the business.
The fact is, you may need close to $13,000 to kick start the business if you do not mind starting small.
You may however require as much as $500,000 if you want to go the big way. You can source for fund from banks and lending houses for the business. Government grants too can help to start it.
Before you kick start the business, you must first ask yourself if you have what it takes to carry it through.
Do you have the passion for food preparation? Are you knowledgeable in terms of different types of dishes and use of ingredients?
Additionally, you must consider the other factors listed below:
- Do you plan to include other related services like retail, delivery and catering?
- What is your unique selling point that will give you an edge over competitors?
- What is your general menu theme?
- What kind or genre of light music will you adopt?
- Can you successfully create an ambient atmosphere in the restaurant to the pleasure of your clients?
- What will be your meal periods and operating hours?
- What will be your choice of furnishing and decor?
- What service style do you want to adopt? Is it quick-serve, fast-casual, casual upscale, or fine dinning?
What is your target market?
You need to equally determine your target market before you proceed with the business. Who are the people you want to provide your services to?
Are your target customers people residing in multifamily or single housing units? What is their household size? What is their ethnicity? And what income range do they belong to?
What is their age group? These factors will largely determine the location of the restaurant as well as its size.
The market size of the target audience must also be put into consideration.
Location of the business
Location is about everything in restaurant business. Depending on want your target market is, you can decide to establish the business in residential or commercial area.
When deciding on the location, you should consider the amount of traffic available in such location.
You should also consider proximity of that location to residential or business areas. What is the population in that location? How many restaurants are already established there?
These are very important considerations that will end up determining the success or otherwise of the business.
The restaurant business might not be so easy starting, but with adequate preparation, including getting some experience on how the business works by working for sometime in a restaurant, you can make a huge success of it.
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This post first appeared on Success Principles Online, Small Business Success, Life Success, please read the originial post: here