You’ve likely heard the frightening statistic from the US Bureau of Labor Statistics that nearly 20 percent of new businesses fail within their first 2 years of operation. Moreover, that percentage rises significantly each year, with nearly 65 percent of businesses failing during the first 10 years. If you are planning on opening your own restaurant, you may find that statistic extremely frightening, but you shouldn’t let it stop you from achieving your dreams. Find out the things you must know before starting a food business.
It may seem bold to say, but you are nothing without your business plan, and potential investors won’t take you seriously if you don’t have one. A business plan lays out every aspect of your business in full and considerate detail. That means it will include the type of business you plan to have, your marketing plan, your food concept, your location, your target audience, your budget, and potential staffing. This business plan will help get your foot in the door and will be a stronghold you refer to as you start breaking ground.
One of the most significant sources of spending will come from the must-have kitchen equipment your new restaurant needs. Thankfully, the part of your business plan that focuses on the food you will serve will help you zone in on the specific equipment your kitchen needs. Try to divvy your equipment into cold, hot, and cutlery categories, as this will greatly assist you when shopping. You might even consider putting feelers out to local restaurants to see if they’re selling any of their used equipment.
Licenses and Permits
Securing your licenses and permits is an aspect of opening a restaurant that people don’t often find very exciting. However, this part is one of the most important things you must know before starting a food business. If you fail to secure the proper permits and licensing, your business could be hit with fines and closures. As such, it’s essential that you follow all food service regulations and health and safety codes as applicable to your area.
It might seem odd to begin looking for potential employers when it seems like your business is so far away from opening its doors. However, it’s crucial that you start getting the word out as soon as possible. If you have never hired might a restaurant staff before, you not know that the onboarding process can take quite a while. You’ll have to speak with many potential employees and have multiple rounds of interviews before making that final, challenging decision on who to hire. As such, you want to ensure you allot more than enough time for this process so that you can feel confident in the employees you choose.