2 answers
6
Questions
Asked
524 views
how much money will go into opening your own restaurant?
im 16 with not much money to my name so how much will I need to ask for from the bank and how much of that can I make up myself
Login to comment
2 answers
Updated
Doc’s Answer
Jonathan the answer isn’t straightforward and varies based on a number of factors, such as the restaurant type you want to open, where you want to operate, and how large a restaurant you are planning. Do you want in-restaurant dining or exclusively takeout and delivery services? Fast food or fine dining? After licensing and permit fees, which can run as much as $275,000 if you’re renting your restaurant space to $425,000 if you want to own the building yourself. Some people spend millions of dollars acquiring prime real estate and renovating with state-of-the-art equipment, while others find smaller, previously owned restaurant spaces with used supplies to save money on their initial development costs.
Before you plan any menus, launch any websites or hire any staff, you need to write a comprehensive business plan. The most important element of a business plan is the financial forecasting. This includes details of potential funding requirements, and the general costs for starting and running a new business in the restaurant industry. It’s important to be realistic when calculating your startup costs, and remember that you’re likely to spend a large proportion of your budget before you’ve even opened your doors. If this isn’t an option for you, a solid business plan will boost your chances of securing outside funding.
Good Luck Jonathan
One of the biggest expenses for your business is the down payment you pay when purchasing real estate. Even if you are renting your restaurant space, make sure to budget for a deposit to secure your lease.
Upgrading your building with new decor allows you to cultivate an environment where customers will want to spend time and money. Remodeling can include installing new lighting fixtures, repainting walls, adding windows and updating the floor plan.
Outfitting your kitchen with ovens, stoves, vent hoods and industrial freezers is a significant startup cost. Dining room furniture, silverware, glassware and incidentals like tablecloths and napkins are essential for a complete dining experience.
Don't forget staffing plays an important role in the operation of your restaurant. Depending on the amount of staff you need to operate your restaurant, your labor costs can be a significant cost of your overall gross revenue.
Before you plan any menus, launch any websites or hire any staff, you need to write a comprehensive business plan. The most important element of a business plan is the financial forecasting. This includes details of potential funding requirements, and the general costs for starting and running a new business in the restaurant industry. It’s important to be realistic when calculating your startup costs, and remember that you’re likely to spend a large proportion of your budget before you’ve even opened your doors. If this isn’t an option for you, a solid business plan will boost your chances of securing outside funding.
Good Luck Jonathan
Doc recommends the following next steps:
Thank you, this is amazing! I really needed it.
Updated
Kimberly’s Answer
Hello Jonathan, it's fantastic to see that you're already brimming with promising ideas for your future. Remember, launching any business is a journey that demands a significant investment, unwavering dedication, extended hours, and a deep understanding of the industry. The best way to navigate this is by learning from those who've walked this path before. Next time you find yourself in a restaurant, don't hesitate to request a chat with the manager or owner, if they're around. They could provide valuable insights and answer any questions you might have. Keep pushing forward, Jonathan, your entrepreneurial spirit is commendable!