Wednesday, November 21, 2012

Looking at Opening Your Own Restaurant Business

Written by Hawker ?? Tuesday, 20 November 2012 02:44

There are many young entrepreneurs and people that've stumbled upon money who consider starting their own restaurant business. While there are many stumbling blocks it's not all bleak, as most new restaurants end up closing their doors in less than two years and the rest of market data suggests. Starting a restaurant takes time, money, and a lot of research. You'll need a thorough understanding of what equipment you'll need as well as the history of how other similar restaurants have performed in the same geographic area. You'll also need to research the restaurant industry and determine what type of restaurant best suites your skills set.

Chinese, Italian, Specialty Restaurant?

Choosing what type of restaurant you'll open takes careful planning. You may want to consider what kind of restaurants are currently popular. Right now, frozen yogurt shops are all the rage. You may want to take this into consideration: market forces and what people currently expect from specialty restaurants. Just because you can whip together some spaghetti doesn't mean you're qualified to run an Italian restaurant. Sometimes passion isn't enough. Transferring your abilities to cook Italian food to something more profitable can seem like "selling out"

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You Need Capital, Period

No matter what the type of restaurant, rest-assured that you'll need one thing: money. Unless you're the beneficiary of a trust fund or have stumbled across a lot of money you'll need to master the art of "the pitch". Investors are an integral part in funding your new restaurant business. Not only do they provide you with the actual money you'll need but they also can provide valuable insight to how to run/start your business. Assuming that you're pitching investors who have experience in the restaurant industry, these people will often be brutally honest in reaction to what you present to them. Even if an investor(s) turns you down make sure to ask plenty of questions I.E.- what was wrong about my pitch? why wouldn't this restaurant succeed? how should I approach investors in the future?

The Restaurant Business is Tough

There's no doubt about it, starting a restaurant isn't for everyone. The success rate is extremely low (if success is defined by the ability to turn a profit) and many people are skittish about venturing into it. There are plenty of reasons why it's so hard. But don't let the naysayers deter you, if you have the passion and pieces in place to run a successful restaurant business then go for it. Just remember to do your research. Throwing money at something as intricate and involved as a restaurant business is not a wise way to approach the situation.

Source: http://trademartes.com/entrepreneurship/205-looking-at-opening-your-own-restaurant-business

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