How much money do I need to start my dream restaurant?
There are two possibilities:
- Start from scratch
- Buy an existing restaurant
Depending on option 1 or 2, the initial capital are slightly different. I f this is so, why do I need to buy some one else joint, when I can create my own concept and be the top dude in my kingdom?
Let’s look at option 1
If you start from scratch you will need the following:
- A fair amount of cash, somewhere around $250,000 to $300,000. You will need to put money in your venture for at least 1 to 2 years or more, that’s how long it takes to break even.
- To secure a lease or buy a suitable for business piece of land [remember the 3 magic words: LOCATION, LOCATION, LOCATION.]
- To post your business name in a local newspaper
- To open a business account in a local bank
- To hire an architect (can do any new construction without one)
- To hire an accountant
- To have a clear concept of what kind of restaurant you will create (coffee shop, seat down restaurant, table cloth restaurant, fast food or…)
- Apply for permits [building and safety, health department, fire department, city for awning and signage]
- Deposits to: Electric & Water company, State Board of equalization, Telephone co., Gas company. All of those might amount to somewhere around $15,000+ (depending of the seating capacity of your restaurant.)
- You will need 3 bids from contractors to implement the work
- The most expensive steps involve what nobody will ever see: Plumbing, Electric work, gas lines to kitchen, A/C. All of that is burried under ground or on top of the building out of anyone’s sight.
- You will also need new electric box ($12,000 or so.) Grease Trap (15 to 20K)
- Do not forget the first & last month for the rent.
- Your lawyer is in the waiting for a nice fee to write gibberish in all official papers you will have to sign. On my side of the ring, I never use a lawyer. You can do without one, if you have $0.02 of common sense. If you are insecure HE (the shark,) will sock it to you big time.
- Then when everything is in motion, you will spend your time with the contractor (and sub-contractors) watching your baby come alive. You will have some good times and bad times. Many a night you will have nightmares and stay awake and ready to throw the sponge. This will be in relation to your stamina, and how much punishment you are able to swallow.
- Meanwhile you have to think about pre-opening marketing. Opening night, what you gonna do? Who will be invited for that special night? Are you hiring a PR? Do you send letters to newspapers, TV stations, Radio stations. Did you gt answers from those folks? Did you get interviews? We will have to detail all of that good stuff in a later section of our marketing.
- Well, it ain’t all, you need a Business Plan, a Marketing Plan. You can write one or get one from Best Eatz for a ridiculous price od $49 each. Most accountants will charge between $1,500 to $2,000. Our business plan is 100% dedicated to the Hospitality Industry, with a Money Back Guarantee if not 100% satisfied.
- All of that looks complicated, it is. You will not get the restaurant of your dreams without any sweat and tears.
(to be continued with Part 2)