How to Start a Successful Restaurant Business in 2018
by Arina Smith Business Planning 26 February 2018
If you have always wanted to start your own restaurant, it is time to sit down and draw up your plans. Although starting a restaurant seems interesting, you should know that it is a time consuming process and restaurants are very difficult to launch successfully. In fact, sixty percent of restaurants fail within the first year.
Here are some tips that will come in handy if you are thinking about opening your own restaurant:
Have a Solid Business Plan :
You cannot just write your business plan on a napkin. You have to sketch out a detailed plan that will chart the course of your business. Think about your business plan as a living document that you will refer to on a regular basis to measure your progress.
If you have not already conducted a GA Secretary of State Business search for names for example, you should do it before opening a restaurant.
Your business plan should include market research, a marketing plan, an in-depth look at your competitors, budgeting projection, and some info about your target audience. You should look at restaurant planning templates because they will give you a general idea of where to begin. You should pay attention to your marketing plan because word of mouth can only bring in so many customers.
Here are a few ideas that will help you to market:
– Offer discounts to new customers
– Give out food samples and participate in community events
– Join the local business association
Location is everything when it comes to owning a restaurant. You should choose a spot that is easily accessible, has growth potential, and draws in the crowds. Lastly, you should ensure that the business location fits within your budget.
When looking for a location, it makes sense to take your time. You should conduct research to find out if there are startup incubator spots for restaurants then join them to keep your costs low. Whether you are renting the space or building from scratch, choosing the correct location is key. If you plan to serve alcohol in your establishment, knowing the law is necessary.
Test the Menu :
You should approach making your menu the same way you would an experiment. You can host a dinner party then serve the food on your proposed menu and ask the people present for an honest opinion. You should not just invite your friends and family to the dinner, you should ask your friends to invite their friends if you want honest feedback.
Hire Staff :
How many people do you need to work for you? You should take your time when hiring staff members and do a soft opening to see if things will run smoothly. If you cannot afford to hire employees right away, you should ask your friends and family for help.
Have the Right Intentions :
If you want to succeed as a restaurateur, you must love what you do. You might have to work other jobs to make ends meet before your business takes off. If you want to own a restaurant more than anything else, you should not be afraid of making sacrifices.
You should be ready to invest your time and money in making sure that your restaurant meets the needs of its customers.
Secure Money :
As with any other business, you need to generate startup capital that will get it off the ground. You will need three pools of funding, which are:
– Onetime costs for equipment purchases
– Restaurants expenses for the first six months
– Your personal bills for the first six months
Keep Marketing :
You cannot depend on repeat customers, which means that you need to keep marketing to ensure that your revenue does not dry up. Make sure that you print ads in the local paper, participate in the local fair, and establish a social media presence. If you have a website, you should make sure that it is optimized for searches.
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