1 answer
Juan
Student
San Luis, Arizona
3
Questions
Asked
442 views
how much money do i need to start a small local restaurant.
i would like to start my own restaurant when Im older but i would not know where to start.
Login to comment
1 answer
david kirk
Retired Computing Manager
478
Answers
Syracuse, New York
Updated
david’s Answer
Hi, Juan,
Starting a restaurant can be an exciting experience, but it has several steps involved, partly because restaurants serve food that involves the local government's health department. Here are a few of the steps you may face:
- you would need a business license
- you would need a bank account for "Juan's restaurant" - that's different from a personal account.
- you might need a tax id from the Federal government
- you need business liability insurance and business property insurance
- you need a business phone number
- you need to rent space and probably have a minimum one-year lease.
- you probably need a tax accountant
- you will need written agreements with food suppliers to ensure adequate food to prepare.
- you will need a line of credit from the bank, so you can purchase supplies and food prior to selling them.
- you will need to hire at least one employee to ensure the store is always open.
- you will need an appropriate software accounting system to track payments, inventory, and salaries
- you will need to buy appropriate shelving and other furniture for the restaurant
- you will need professional assistance in creating ads for the restaurant
- you will need to advertise in multiple media to announce your restaurant.
- you will need sufficient cash for initial obligations, and enough in savings to handle all costs for the first few months until the restaurant begins to stabilize with costs and revenues.
However, with all that, if it feels right, it can be a source of endless smiles. All the best to you in your pursuits.
Starting a restaurant can be an exciting experience, but it has several steps involved, partly because restaurants serve food that involves the local government's health department. Here are a few of the steps you may face:
- you would need a business license
- you would need a bank account for "Juan's restaurant" - that's different from a personal account.
- you might need a tax id from the Federal government
- you need business liability insurance and business property insurance
- you need a business phone number
- you need to rent space and probably have a minimum one-year lease.
- you probably need a tax accountant
- you will need written agreements with food suppliers to ensure adequate food to prepare.
- you will need a line of credit from the bank, so you can purchase supplies and food prior to selling them.
- you will need to hire at least one employee to ensure the store is always open.
- you will need an appropriate software accounting system to track payments, inventory, and salaries
- you will need to buy appropriate shelving and other furniture for the restaurant
- you will need professional assistance in creating ads for the restaurant
- you will need to advertise in multiple media to announce your restaurant.
- you will need sufficient cash for initial obligations, and enough in savings to handle all costs for the first few months until the restaurant begins to stabilize with costs and revenues.
However, with all that, if it feels right, it can be a source of endless smiles. All the best to you in your pursuits.
Thank you for answering my question and I hope that I can use this in the future and help my dream come true of owning a restaurant.
sincerely, Juan
Juan