Opening a restaurant in New York is not an easy task, but it’s very much possible. The following blog post will outline the step-by-step process of what you need to do to open your own restaurant in New York City or anywhere in New York State.

This includes how to find a location, which permits are needed, and other considerations that you may want to think about when opening up shop in this bustling city. If you’re interested in learning more about how to start a new eatery or are looking for some guidance on going into foodservice, check out our blog for great information!

New York Business Outlook and Trends

New York’s economy is the third-largest in the country, and if it were its own country, it would be one of the world’s most powerful. New York offers unparalleled opportunities and challenges for entrepreneurs!

New York City is the entrepreneur’s best friend; this city has a plethora of startups. New York City is the top city to open a small Business in America, according to CNBC.

Small businesses form a substantial portion of the New York State economy, and 98% percent are smaller than 100 employees. They employ over 54% of the workforce!

For those of you who are thinking about starting a small business in New York, there is no better time than now. With the current state government’s pro-business initiatives and recent tax benefits for entrepreneurs, it has never been easier to start your own company.

Find out more about business startup resources at the Empire State Division of Small Business

Step 1: Research Your Restaurant Business Idea

All great businesses start with good ideas.

One of the best ways to get profitable business ideas is to review my lists of new business ideas such as small-town business ideas or home-based – lots of which are in your chosen industry and niche.

Another way to find your next startup business idea is to experiment with my fun tool –  Business Idea Generator.  Creative ideas are a great way to stimulate your entrepreneur brain and get your creative juices flowing. The button on this tool will provide you with new concepts for products, services, or side hustle businesses that can help do just that!  

Test Your Business Idea

Now that you have researched your idea, it is time to test its viability. It’s important not to invest in an idea until we know for sure whether or not it will be profitable!

Serial entrepreneurs should always test their ideas before investing too much time and money.

As a serial entrepreneur, I have done tons of business idea testing. Some ideas passed, but lots failed. But I am sure glad that the ones who didn’t were only small investments while my new-found confidence in myself was more valuable than anything else!

Below are the best ways I have found to test new product ideas. Get the full list of my 10 best ways to field test your business ideas here.

• Visit Trade Shows with Your New Products
• Ask Others for Constructive Feedback
• Run A Short Testing Ad Campaign
• Stage a Focus Group Session

Market Research  – Your Business Ideas

All successful businesses MUST provide a service or product that is needed by the customer in order to thrive.

The adage, “The customer is always right,” has never been truer than in today’s economic climate. To thrive amidst the competition of cutthroat industries and an ever-changing market landscape, your business needs to be able to meet its customers’ demands

Find out if your new business idea will solve problems that customers are willing to pay for by thoroughly researching the marketplace.

Begin by asking the following questions to study the market, competition, location, and target customers’ needs and wants.

Learn if the Market NEED & WANTS Your New Product or Service

• What problem, need or desire is being solved by your product?
• Who are the people, or companies, that have this problem? Why do they have the problem? What are they trying to achieve?
• How are they answering this problem now, without your new startup? What products and services are they using?
• What are other companies offering for this need – similar or dissimilar products to your business ideas?
• Where does your new firm fit into the marketplace?
• What is your point of difference, competitive edge, over established companies? Why should people buy your product instead of what they are using now?

Step 2: Name Your Restaurant

How to Name Your Business so Customers Remember Your Brand

A company’s name is one of the most important parts of a business but picking out an appropriate and catchy company name can be tough. Here are my best tips for coming up with names that will stick in people’s minds!

Make a List of Keywords

The words and phrases that your prospective customers type into internet search engines to find companies like yours.  Add other towns, states, and countries to your search to find similar firms, outside of your marketing area for inspiration.  

Don’t use another firm’s exact name, just use those names to brainstorm your own unique brand name.

• Use market level words such as industry names (ie catering, plumbing) and see what comes up
• Brainstorm a list of related keywords (example for Bakery – sugar, sweet, dough, icing, fluffy, etc)
• Try your competitive advantage term (ie faster, cheaper, cooler, closer) to find interesting concepts
• Your value proposition, innovation, or special feature is a good source to build memorable names (example – Evernote – Remember Everything)
• Outside of Your Industry – Step back and look for an interesting combination of words from outside the industry such as Apple (a fruit) for electronics.

Play with Words for a Great Brand Name

It can be difficult to think up a catchy name for your brand-new business venture. Here are my best tips on coming up with company names that will get people talking about how amazing your products are:

Take that list of key words and you created using my tips above and then play around until you find that perfect new startup name.  

Combine Two Words – Blend real names of two or more owners into an interesting compound business name. Learn the many ways to combine names in my article here. 

Acronyms – An acronym is different from a name made up of initials and creates a new word. An example of an acronym name is LEGO (short for Leg Godt – danish for “play well”) pronounced as one word.

Use this online tool to brainstorm some creative acronym business names.

Wordplay and Puns – Puns are jokes that exploit the different meanings of words – a play on words. They can make funny and catchy business names.

Some examples of business name puns; Cake my Day, Live Free or Pie, and Food Mood. Have fun and get business name inspiration with this free Pun Generator tool.

More Business Naming Tips: How to Come Up with a Catchy Business Name

Get Inspired with List of Business Names

To help inspire you I have written lists of catchy business names for lots of types of companies and different industries. Check out these unique business name ideas that are not taken and available!

To check to see if your business name is available in New York, you should first do a business name search, a domain name search, and a federal trademark search. Here’s how

How to Register Your Business Name in New York State

If you want to form a New York State business, requirements vary depending on your legal structure. Sole proprietorships and partnerships operate on the same level as LLCs in terms of name registration requirements, but these corporation business types have their own set of rules to abide by in New York. 

1- Seach New York Business Entity Availability

Begin by searching the New York Business Name Database. If you file for an identical business name as someone else, your request will be denied. For a business name to be possible for registration, it must be both unique and available.

2- Search Trademark Records

Next, search the U.S. Patent and Trademark Office database here to find out if another person has already trademarked your desired business name.

3- File an Assumed Name in New York – File a DBA in NY

Filing an assumed name in New York, also known as a DBA name, allows your existing or future business to conduct business using a new name other than its legal business name. That is helpful as you establish your brand name or if you want to change the name of a business without having to file an amendment with the State.

New York State law requires all partnerships to register a business certificate with the appropriate county clerk’s office.

Here are the links you will need to the State of New York Assumed Business Name instructions and the New York State Assumed Business Name form.

NOTE: The use of the following words and phrases are restricted or prohibited by statute* in the name of a Business Corporation (“BC”), Not-for Profit Corporation (“N-PC”), Limited Liability Company (“LLC”) and/or Limited Partnership (“LP”), such as bank, cooperative, etc. Here is the full list of prohibited words for business names in New York State

Fees: The fee for filing a Certificate of Assumed Name in New York State is $25 plus any associated county fees.

This certificate must be typed or printed out in black ink. It must also have clear signatures so that the Department of State can reproduce it legibly.

Yes, you can DIY your own business name registration in New York State…but why bother when our partners at Incfile are offering a free (yes, $0) package to set up your business. Get the no-brainer deal today!

4- Domain Name Availability

I recommend that before calling a web developer to build your site, check if your business name is available as a domain. So, be sure you check to see whether the desired URL is already registered. It’s not in use by another firm.

You will want to buy the domain name of your business website before someone else does!

Use this free domain search tool and get a FREE domain from Bluehost too!

Step 3: Meet New York Legal Requirements: Government Registration, Licenses & Taxes

Choose Your Business Structure

Before starting a new business, entrepreneurs should make sure they’re following all the legal regulations of starting and operating a small company. It’s important to stay on top of government paperwork as well as taxes in order to avoid any setbacks or penalties later down the line.

Next, we will cover the legal requirements for business registration with your State and tax regulations. There are IRS rules to take into consideration as well when you’re starting a new venture that needs to be determined before getting the right business licenses or permits in place.

Establishing legal compliance of your new company will allow you to focus on growing the business.

Legal Business Entity Types – Explained

Your business is considered an entity or an organization in the eyes of the law and government, this means that you need to have a structure such as Sole Proprietor DBA, Corporation, LLC a limited liability company in which you run your business from.

The entity you choose to operate your business will dictate the legal protection afforded to it, which in turn dictates how much personal liability you face.

Here is how to determine the best legal structure for your new startup business such as sole proprietorship, partnerships, corporations, or trusts.  

There are many types and variations to business structure.  Depending on which kind of business you intend to run, how the day-to-day operations will be carried out, and various other factors, a particular business structure may be of more value to you than another.

Legal Business Formation Entity Types

• Sole Proprietor
• DBA – Doing Business As
• Partnership
• Corporation
• S Corporation
• Limited Liability Company (LLC)
• Non-Profit (Not for Profit)  Corporation

Sole Proprietor

A sole proprietorship is the business formation most adopted by individuals.  It is also the form of business that carries the most liability for the owner—a single owner, personally responsible for the sole proprietorship.  

For sole proprietors to be legally allowed by law, they can either use their legal personal name or take the optional route of obtaining permission from local authorities first in order for a DBA.  

A sole proprietorship is a legal structure like LLC or Corporation, and a DBA isn’t. A DBA means you can operate your business with trade name different from your registered, legally-registered first name.

DBA – Doing Business As

The “doing business as” or DBA is a legal requirement for businesses operating under different names than their legal name.

In order to operate legally, you need to register with the proper state agency and file an assumed name certificate that states who owns your company. The only time this may not be required is if both owners are using their actual last name on any products they sell – in which case no one needs approval from anyone else!

Sole proprietorships and general partnerships are legally required to file DBAs, but almost any business entity type could benefit from having one. This is because a DBA can serve as an important form of protection when conducting business; for example if someone becomes liable for damages that occurred during the course of their company’s operations, they may be able to claim that liability was due solely to personal actions or decisions which were not related in anyway with the corporation.

Partnership

A business partnership is a legal relationship that can be formed by any written agreement between two or more individuals.

The partners and investors invest their money in the business, with each partner benefiting from any profits, taking responsibility for losses sustained.

One of the best ways to do start a business is with a partnership. It can reduce costs and help you reach your financial goals faster. The advantages of this are that it builds trust among the partners, and allows them to handle tasks more efficiently while sharing in profits.

Business partnership resources:

How to find a good partner

Business partnership types – advantages & disadvantages

How to split profits in a small business partnership

Limited Liability Company (LLC)

A popular form of business structure is the limited liability company referred to as an LLC. Each state has its regulations regarding the LLC, to clarify how it differs from the other previously mentioned business formation types, let’s start by defining the LLC.

An LLC can be thought of as a hybrid structure.  It is sort of a mix between a corporation and a partnership.  One might think of it as a partnership that insulates the owner’s liability to some limited degree, but similar to the corporation’s structure.

Read my advice about whether an LLC would be a good legal business entity for you here

Incorporation

Some businesses should incorporate, most notably those seeking venture capital and manufacturers. Other firms should not incorporate such as small one-person companies, often referred to as solopreneurs and those with low capital do not deal in products or services that could be dangerous to your customers. 

Next we will discuss incorporation as a business entity and the different types of corporations options.

S Corporation

An S Corporation differs from a regular corporation in that it chooses to pass credits, deductions, income, and losses through to the shareholders.  These shareholders would add these to their income tax.  It enables the business to simply pass along the numbers to the owners (shareholders) and act as intermediaries.  

C Corporation

A corporation is a quite different creature from a sole proprietorship.  In the United States, a corporation is a sort of virtual entity.  A corporation takes on rights and abilities like a person – that’s why it uses the word “corp” as in the corporal body.  The difference is that it features the ability to exist perpetually, quickly transfer interests, and provide limited liability for the corporation’s shareholders (owners).

Read my advice about whether a corporation would be a good legal business entity for you linked below:

Business incorporation resources

Differences Between LLC and Corporations Compared (S-Corp and C-Corp)

FAQ: How are Corporations Taxed?

LLC vs Corporations: Which is Best for Your Business?

Non Profit Corporation (Not for Profit)

A nonprofit organization is one that meets the IRS requirements for tax-exempt status because they provide a public benefit and have social missions.  Nonprofit organizations include hospitals, universities, national charities and charitable foundations that give back to the community for the common good.  

Nonprofits must serve the public good in some way. They do not distribute profit to anything other than advancing their own organization’s efforts for an even better future–one of which will be more abundant and prosperous.

Nonprofit organizations exist solely as tools with one goal: to provide a meaningful service or product that benefits society at large while also benefiting themselves by providing them with opportunities such as personal development, education, networking, etc., all aimed towards creating a world without poverty.

A not-for-profit organization is one that does not earn profit for its owners. All money earned through pursuing business activities or donations goes right back into running the charity.

Not-for-profits are not required to operate for the benefit of the public good according to law. A not-for profit can simply serve its own goals without benefiting anyone else’s interests, this is often done by ‘selfless’ people who don’t want any compensation whatsoever and believe they’re doing what’s best in their communities

When a business becomes a partner, it should register with all states where the partnership does business to be in compliance.

If you are interested in setting up a non-profit, or not-for-profit, check out my expert tips here.

Learn more in my guide: How to Start Your Small Business Legally – Important Legal Requirements

Register Your Business with Government and IRS

Get Your Federal and State Tax IDs Number

The State where your business headquarters are located AND your chosen business structure determines how you will need to register your business.

While not every business must be registered with the government, I recommend that you do so to take advantages of the legal and tax benefits – plus get personal liability protection from business debts and lawsuits.

Once you properly register your company you will be issued an employer identification number, or EIN for short. You need this number – even if you are working alone, self-employed or hiring only subcontractors and no employees.

An EIN number is the business equivalent of your personal social security number and is used in various steps like opening up an account at a bank or paying taxes. Not all states require that you get one, but it might be worth getting if there’ll likely be more tax-related things coming ahead of time.

Registering your business with state and local governments is usually as simple as registering your company name.  Here’s how to do register our business in your state:

Apply for Your Business Licenses and Permits

You are responsible for making sure your business has the proper federal, state and local licenses and permits to operate legally. A pivotal part of this process for many entrepreneurs is determining what type of licensing they’ll need.  Here are two ways to research which business liceneses and permits you will need in your State and for your specific industry startup:

1. FREE online business license lookup tool
2. Low-cost business license research service

Online Business Lookup Tool – FREE

Business licensing is something that people often overlook when setting out on the entrepreneurial path–particularly those who have never started any kind of company before. 

At Incfile they take the guesswork out of how to obtain a business license and the necessary permits which their easy-to-use business license look up tool here Yes its free.

Simply select your State and niche industry and in second you will know precisely which licenses you require. Plus you will get links to permit application and helpful guides.

Business License Research Package – LOW COST

You must understand how important it is for complying with local laws can be even if you’re not physically located within city limits! One example is meeting all requirements related to commercial zoning regulations like getting approved by your town council (as well as municipal planners).

Furthermore, don’t be fooled; your corporation or LLC may need more than one license to operate fully at the state level.

Here you can get the most up-to-date, state-specific information about exactly which business licenses you must obtain based upon certain factors such as industry type or whether it’s an online endeavor rather than brick and mortar shop.

Protect Your Company’s Intellectual Property Assets

If your new businesses develops new inventions, manufacturing processes or products you will want to protect your intellectual property with patents, trademarks, and copyrights issued by the US patent and trademark office.

Learn more in my article – What is Intellectual Property and Why it’s Important to Your Business

How to Start an LLC in New York State

Want to form an LLC in New York? Here is a list of forms you’ll need, fees, and other important information about the process.

Before deciding to form an LLC, you must understand what an LLC is and a viable business structure for your company. An LLC is a business structure offering limited liability to its members. Members of an LLC may include individuals, corporations, other LLCs, and foreign entities

Filing an LLC in New York: Forms and Fees

When it comes to starting an LLC, New York is a great place to start because the process becomes easy as long as you follow these simple steps. The forms and fees required are listed below:

Forms Needed

Begin by completing the form DOS-1336 titled Articles of Organization – DOWNLOAD HERE.

Complete form with the following information for your new business:

• New York address for members to be contacted if legal actions, such as lawsuits, are filed against the company. 
• LLC member signatures
• LLC name that meets New York state requirements – READ about LLC name regulations here. 

Fees to Form LLC in New York

Submitting the Articles of Organization online costs about $200 and takes 15 days, and the Certificate of Publication requires a $50 fee. 

Check with the New York Department of State for the latest filing fees – HERE. 

Limited liability company operating agreement

To make your filing process legal, have your Articles of Organization (DOWNLOAD HERE) ready within 90 days.

Certificate of publication

The Certificate of Publication (DOWNLOAD HERE) needs to be filed with the Department of State within a 120-day window following filing the DOS-1336.

Licensing Requirements for New York State

The New York Department of Health requires all restaurants to get and prominently display this permit on-premises. The health authority approves where the place is and if they can sell food.

To open your restaurant, remember to submit your application at least 21 days before your opening date. The maximum length of time a permit is valid for is two years and typically ranges between $200-$400.

Apply for your New York restaurant permit here – also called a Food Service Establishment Permit

A food service establishment permit is only one of the permits you will likely need. The State of New York’s website provides information about ALL the permits and licenses needed for running a restaurant. Find out which permits you will need for your NY restaurant startup here

You may also need other permits, like a building permit or a parking lot permit including these:

• Sales Tax – Read the NYS sales tax regulations for restaurants here
• Liquor & Wine License – Get more info here
• Sign Permit – Contact your local building department

For New York restaurants you can apply and get more information about liquor licensing on the Liquor Authority’s Division of Alcoholic Beverage Control website here. On the site, you will find various alcohol license categories, including one for dine-in establishments serving beer and another for restaurant wine. You may need to hire a lawyer because legal liquor license applications can be complex.

If you are going to serve a lot of people at your restaurant, you might need additional licenses and permits from both the fire department or police department. Check with your local government departments to approve the restaurant’s emergency exits.

The government of New York City has prepared a list of notices that restaurants also need to have displayed on-location. Access this helpful list here

Health and Safety Regulations

NY Restaurants are subject to MANY laws regarding food health and safety. The New York State Department of Health’s regulations for restaurants contain several dozen sections including employee handwashing, cleaning and sanitizing utensils, and ventilation. The Department of Health has a brief guide that can help you ensure that you are meeting these regulatory requirements.

Read more about the New York State regulations for different types of eateries such as dine-in, vending, mobile, temporary, and selling homemade foods here

When you’re thinking about a new food establishment in your city or town, remember that they’ll be monitored by the local health department regularly.

Officials from the health department can ask for a wide range of items to be inspected, through local authorities have a good deal of latitude on what they will inspect. Inspections cover not only the food itself – raw and prepared – but also other aspects such as refrigeration systems, cooking equipment, and waste disposal.

Your inspection grade needs to be displayed in order for it to be valid, and the local government will publish your inspection result online if they so choose.

State regulations on health and safety in foodservice establishments, as well as federal OSHA standards regulating such matters as eye protection requirements for the kitchen workers, are an important factor for any restaurant to consider. Read the OSHA restaurant manual here

Restaurant Insurance Needs

There are various risks associated with operating a restaurant. These risks include customers or workers falling on-premises, someone becoming harmed from hot liquid or broken glass, and someone getting sick to their stomach as the result of eating food prepared there. The risk of property damage or personal injury from more everyday business risks such as theft and fire are not to be taken lightly.

When looking for insurance, try to work with an agent who has experience writing policies for restaurants. Make sure your insurance includes sufficient coverage for your equipment, such as plates and stoves.

For injuries to people, make sure your general liability policy is adequate. This should cover people who slip at the restaurant’s front door as well as those who get sick from eating the restaurant’s food. In addition, you should make sure that your catering company has the proper vehicle insurance for delivery.

Get affordable Restaurant Umbrella Insurance here

New York State Business Sales Tax Information

Congratulations, you are ready to launch your New York business! Here is what you need to know about how to collect and pay sales tax in the state.

Tax Registration in New York State

In order to set up a small business properly, you must register with the New York State Tax Department before starting your venture.

To get more information and see if you need to register and pay sales tax, read these government tax publications:

• Do I Need to Register for Sales Tax?
• Sales from Your Home: Sales Tax Regulations

Some businesses which sell taxable property or services must meet certain criteria to be considered a tax vendor. They must register and collect state and local sales taxes in New York State. Read more about this law of sales tax vendor presumption here.

Register for a Certificate of Authority 

Before beginning or purchasing a business, you need to apply for the Certificate of Authority HERE using New York Business Express’s helpful website.

Get more information in this NYS tax bulletin – How to Register for New York State Sales Tax

Collection of New York State Sales Tax

Once you register for sales tax purposes, your company agrees to the following: 

1. Be responsible for collecting the tax that you owe on behalf of your customers.
2. Prepare your sales tax return and submit it with the total amount collected. 
3. Create a separate account for sales tax receipts

The New York state tax law makes business owners personally responsible for payment of sales and uses taxes on applicable business sales. If your business is held liable for unpaid sales or use taxes, the Tax Department can take your assets to satisfy what the company owes.

Filing your New York State sales tax returns

New York businesses must prepare and submit sales and use tax returns quarterly, monthly, or annually with the New York Department of Taxation and Finance.

Helpful resource – 74 page Guide to Sales Tax in New York State

Step 4: Write Your Restaurant Business Plan

No doubt you’ve heard the old saying of one of my heroes Winston Churchill, “if you don’t plan – you are planning to fail”. 

Nowhere is this truer than when starting a business.

Starting a business without any planning is one of the most common mistakes entrepreneurs make. Spare yourself the substantial loss of money, time, and much heartache by taking the time to write a business plan. A well-written business plan is one way you can invest in your future success!

The importance of writing the plan is not entirely in its finished product, but what you discover about your business as you prepare it. During the process of writing your business plan, you will uncover aspects of your business strategy that will not work.

Far better for your startup success and survival that you discover these weaknesses on paper – NOW – then adjust your business model accordingly- than to encounter these problems in your company costing time, money – and quite possibility your company survival.

Think of your business plan as a map for your entrepreneurial journey. You would not set out on a long hike across unknown territory without a field guide and a detailed map.

So, don’t dive into a new business and spend money, time and emotional energy without a map – your business plan.

Your business plan must answer these 9 critical questions:

1. What is the purpose of your business?

2. Who are your target customers?

3. What are the benefits of doing business with you?

4. How do you plan to reach these customers?

5. Where will your company be located and what type of facilities will it need?

6. What kind of employees will you need, and how many people should work for your company at first?

7. Do you have any competitors in this market space, and if so, who are they and what differentiates them from each other and from yourself?

8. What does success look like for this business in one year, five years, and ten years from now?

9. What are the most important tasks that need to be completed before launching a new product or service?

Read my review of business plan software and learn about some great free options here

More helpful resources to write your business plan

Business Plan Musts – For Loan Approval

Questions Winning Business Plans Must Answer

10 Critical Items Your Business Plan May be Missing

Step 5: Calculate Your Finances and Fund Your Restaurant

This is an important stage where you will calculate financial projections to determine if your business idea is profitable and determine your pricing strategy. Also you will need to ascertain the amount of capital you will need for both your startup costs and ongoing working capital.

Calculate Your Startup Costs

Two Types of Startup Costs – Setup and Operational

First, you need to know that there are two distinct types of costs, those you will incur as you set up your company (Set up Costs or Startup Costs) and those that will continue to be expensed as you operate (Operational Costs, Expenses and Working Capital).

Set Up Costs

One time investment to open your store or launch your website includes such items as legal business formation, building renovations, and manufacturing equipment.

These are easier to calculate. You will research each item and simply add up the list for your total set up costs.

Operational Costs

Ongoing expenses to continue business operations including rent, supplies, employee salaries – and most importantly working capital. These costs are more difficult to calculate because they have many more variables. As your sales increase so will your labor and material and inventory needs.

Read my article about how to correctly calculate your startup and operational costs here.

Forecast Sales & Expenses

The next step is to forecast your sales and expenses and generate a business budget.

I have a that I say that is funny but also true.  I tell all new entrepreneurs to take their financial projections and cut their sales in half and double their expenses.

Then, if the numbers show that they will make money they should go forward to launch their business.  Certainly, simplistic, but it illustrates that most entrepreneurs overestimate their sales and underestimate their expenses to their own detriment. 

Here is the right way to create a business budget.

Define Working Capital Requirements

From one entrepreneur to another, you need to get wise about working capital, today, if you plan to keep your business doors open. Because the #1 reason for business failure is lack of working capital. Don’t become a business failure statistic.

Working capital refers to the funds that help you meet the daily expenses and needs of running your business, such as payroll or paying for software, tools and supplies.

From a business management perspective here’s all that you need to know about working capital in my article about what it is, the amount you need, how to manage it like a pro, and if you are short on working capital how to either get financing and how to reduce your working capital needs without a loan.

Determine Your Prices

Begin your financial planning by determining your best pricing.  Pricing your product and service is a bit of an art science.  There are multiple ways to determine your best price, cost plus and market demand & supply.

There are different methods to calculate your prices for your new startup business based on multiple factors such as market demand, competitive prices, and costs expenses.

These are the most often used pricing strategies for small business with recommendations for which methods fit different types of businesses. 

Premium Pricing

This method is when you price your product higher than your competitors. This technique is often used at product launch to create a high-value perception in your customer’s minds.

Incfile makes entrepreneurship easy. Get started with $0 LLC today!

Market Penetration Pricing

This concept is to gain buyers by offering the lowest prices on goods and services to enter a crowded marketplace. It is common for entrepreneurs to use this technique initially. If not planned and executed carefully this is the most dangerous type of pricing strategy for your bottom line and business survival.

Psychology Pricing

By utilizing the power of people’s emotions to buy is the key to success with this pricing strategy. Many consumers consider the price of a particular item a major purchasing factor.  Use this to your advantage by reducing your price a little and changing your buyer’s minds a lot. You have all seen the $199 specials, which are only $1 less than two hundred but seem to be a better bargain.

Read my full article about how to best price your products and services here.   

Fund Your Business

Now that you have a great business idea, you will need money to get started in your new venture.

While there are some businesses that you can start with almost no money some are even free.  Most startups require some form of a business loan or capital investment.

Startup Funding Resource List

Here are some good ways to fund your startup launch. Personal savings

• Loans  – Personal and business
• Credit Cards (Read my entrepreneur tips here first)
• Crowdfunding
• Partners & Investors (Read my article Business Partnerships 101)
• SBA Loans  
• Small business grants – (Read my list of startup grants with applications here)
• Product Licensing – (Read my article about how to sell your business idea here)

Read my full list of 17 Proven Sources For Startup Capital

TIP: If you need to finance your small business consider top recommendation for small business startup loans – Kabbage.com. Read my review of Kabbage loans with verified customer reviews and experience

Step 6: Pick Your Business Location in New York

Choosing the right location for your firm is one of the most important decisions you will make at the onset of your business launch.

Take your time and do your homework of research and planning, before committing to a lease on retail, restaurant, or office space. Study the demographics of the area and surrounding towns, your competition nearby, and much more. Here are the questions you need to ask before signing a lease:

7 Questions to Determine if Location is Good for your Business

1. Image – Does this spot project the brand image you desire?
2. Competition – Are neighboring businesses competition or complementary?
3. Labor – Will you be able to find employees easily, or is it too far to commute?
4. Growth – Is there room for future expansions?
5. Vendors – Are vendors able to deliver here efficiently and at a reasonable cost?
6. Security – What is the crime rate?
7. Zoning – Is this location zoned for your type of business activity?

Helpful resources:

Leasing your first office? Negotiation pointers

Step 7: Buy Restaurant Insurance

Get Business Insurance Policy

Running a business is risky. Injury, natural disaster, or lawsuit can force you out of business and leave your family without income! Business insurance protects against these unforeseen risks to keep things running smoothly so the company doesn’t have to close its doors due to an accident or major incident.

Think about it. If your business gets sued, you will lose money that could have easily been prevented by purchasing the right insurance policy!

Insurance Regulations: Federal IRS, State, and City

The protections you get from choosing a business structure like an LLC or corporation typically only protect your personal property and even that protection is limited.

In today’s world, it is impossible to protect everything. Even with the most comprehensive coverage in place, there are still many gaps that can leave your business exposed if you don’t have adequate insurance protection for both personal and business assets as well!

There are a number of aspects to consider when determining the right type and level of business insurance. For example, you will need different coverage if your company employs other people than just yourself or is within certain industries.

The federal government requires every business with employees to have workers’ compensation, unemployment, an