Restaurant! Just the word is sufficient to flow in a beautiful world of mouth-watering dishes. Beautifully arranged well-decorated tables, sounds of plates, forks, and spoons, the aroma of food items, nicely decorated walls, and above all the ambiance, a restaurant gives some relief from daily stress. Owning a restaurant is a dream of many entrepreneurs. If you want to materialize the dream of owning a restaurant, you must start planning right now. You have to proceed step-by-step.
How to Start a Restaurant Business?
Decide the concept of the restaurant
Do you have any idea in mind? The first thing you have to consider for starting a business is to decide on the restaurant idea. You have to consider several important aspects directly related to the business.
- The most important of these aspects is the capital you have and the investment you can arrange.
- The position of the restaurant is also important along with the theme that you want to materialize
- Have the primary idea of the “Average Price per Customer” or APC.
What about the Investment?
The capital you have in hand (ready for immediate investment) and investment you can expect in near future should be clear to you. This is the primary necessity when you are going to open a restaurant. As the concept of the restaurant is now clear to you, you must calculate how much initial capital you need to start the business. You have three options in hand:
- Self or family funding: The money you have for funding the business along with the money your family is ready to invest in your business. You can also take into confidence one or two of your close friends or relatives. You can offer them partnership if they are eager to actively participate and invest.
- Bank loan: You can approach a few banks for a loan. It is a lengthy matter but if you can arrange much of your monetary issues that naturally occur in the initial days of starting a business will solve immediately.
- Angel funding: This is one of the most trending investment procedures in the market. But, investors in this domain will want to see the progress of your business. Angle funding becomes easy when you have started the business and you have something attractive to show to the investors. However, at the very initial stage, you can try at least to get the attention of angel investors.
Evaluate the Overhead and Recurring Expenses
You should have a clear estimate of overhead and recurring expenses. Salaries of the chefs, wages of supporting staff members, salaries of cashier and other employees, costs of food materials and everything related to cooking, maintenance expenses, electric expenses, and expenses you have to incur for a trade license and other compliance matters.
Get all Required Licenses before you Start the Venture
To run the restaurant business, you have to obtain several licenses and permissions from several authorities such as business registration, trade license from the municipality, GST registration, FSSAI license, professional tax license, and some other state or area-specific licenses.
Get the Right Manpower
In the restaurant business, getting the right manpower is one of the biggest challenges. You can use different sources for hiring people. In the restaurant business, as you know, you require different qualities of people. You can take references from reliable sources, search on social media, use other resources, or take assistance from VLS Sourcing.
This is the basics of how to open a restaurant? But, keep in mind that the initial phase is the most vital phase of the business. You have to be very careful in every single aspect and decision.