HOW MUCH MONEY TO START A RESTAURANT?
RESTAURANT CONSULTANTS OF AMERICA™
The Great Money and Time Questions
Two of the most popular questions that I hear from people who want to start a restaurant are: “What are the financial requirements for starting a restaurant?” and “How long will it take to open a restaurant?”
These loaded questions are impossible to answer without knowing more details about the type of restaurant you’re opening. Are you taking over a pre-existing establishment or opening a new one from scratch? Is the structure freestanding or is it in-line (a mall-type environment)? Do you want to lease or own the property? You get the idea. There are many questions to answer. If you pursue your dream wisely, it will be many months before you serve your first glass of water.
If you want to open a restaurant, you need to make the restaurant your passion. And if you invest the time into putting together a plan, you will find the money you need to fund that passion. If you are haphazard and vague about your goals, you will most likely struggle to find financing or be forced to fund your ill-conceived plan on your own.
If you proceed carefully and thoroughly, the financial requirements will become quite clear, and the hurdles of getting the necessary capital will be easier to navigate. Tons of capital resources are available, but investors always want to know your plan and how committed you are to that plan. Risking your own money is one way to demonstrate your level of commitment to other investors. If you are reluctant to risk your own money, not many people will risk theirs on you. But if the concept and business plan, born of your passion, work, the money will follow.
Food for Thought The one significant difference between a dream and a goal is that goals are written down. Paper and pen are still the most powerful of all tools.
Tip Jar: There are no rules about where startup money must originate. I have seen many cases where little or no money comes out of the owner’s pocket, and I have seen others where the entire show was self-financed. The only rule about investing is this: The successful owner always invests all of his or her passion.
