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Entrepreneurs Small Business

Food and Finances: How to Succeed in the Small Restaurant Industry

Starting a restaurant can be a great investment and a thrilling venture, but there are potential pitfalls around every corner. The vast majority of restaurants barely last five years before going under. A single mistake or accident could drive your new company into the ground if you aren’t careful. These few tips and tricks will help you build a thriving restaurant from the ground up.

 

Create a Comprehensive Business Plan

Having a comprehensive business plan is going to make your life much easier over the next few months. That business plan should include information such as a general company overview, market research, financial projections, and funding requests. It must also contain some information on all of the owners and investors. A business plan will give your company direction and keep you focused on long-term success.

 

Purchase a Good Insurance Policy

Business insurance is going to be absolutely vital to your company’s success. Most states have very specific laws regarding what type of insurance is needed in each industry. As a general rule, your insurance policy should cover risks such as fires, theft, vandalism, and minor lawsuits. You are also going to need workers’ compensation insurance for any employees that get injured. Once every year or two, you should look over your insurance policy to see if any changes need to be made.

 

Hire Smart

Replacing an entry-level employee could cost you thousands of dollars after all of the various expenses have been taken into account. That is just one of the many reasons why you need to focus on good hiring practices while your business is still in its infancy. Every employee should be interviewed and thoroughly vetted before they start their first shift. Hiring employees who have restaurant experience is going to be beneficial, but their attitude and work ethic is much more important.

 

Plan for Emergencies

No matter how careful you try to be, accidents are still going to happen. There may come a day when you need to hire a commercial refrigeration repair technician or replace a bad batch of produce that you received from a local vendor. The ability to quickly pay for those emergencies is going to be vital to your success. Insurance will help you cover some of those expenses, but you should also have a small account for emergency expenditures.

In addition to these few tips and tricks, you need to spend a fair amount of time perfecting your menu as well. You should have as many people as possible test your food and offer critiques well before your grand opening. After that, it’s a matter of getting a reputation built up and a solid budgeting system in place to account for anything the future might throw your way.

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