Top Tips On How To Start A Restaurant Business

How to Start a Restaurant Business

Starting a restaurant business is an alluring dream for many but a reality for only a select few. The restaurant business is like the start of the New York marathon. Thousands of people start the race but only a fraction of those people finish and an even smaller percentage actually succeed in meeting their goal for the race. Why? Well, it simply isn't as easy as most people think and there are key skills and attributes that the entrepreneur must consider when thinking how to start a restaurant business. The National Restaurant Association ("NRA") claims that over 42,000 new licences are issued each year in the US. These are lofty numbers and you would be forgiven for thinking this is a positive.

The reality is that restaurants have the highest attrition rate of any business type. The attrition rates in the sector very wildly, ranging from 90% failing in the first year, to as low as 20% in the first year of trading. A recent academic survey conducted by researchers at Michigan State University found that 27% of start up's failed in the first year; after three years 50% of those restaurants were no longer in business; after five years 60% had fallen away and before the end of the decade 70% of restaurants were no longer trading. While these may seem like scary statistics a subsequent study at Cornell University in 2005 revealed that 81.4% of small business failures result from factors within the owner's control. In other words, despite these damning metrics, failure is by no means inevitable. So how can restaurateurs evade this landmine? Here are our top tips on how to start a restaurant business.

Top Tips For A Successful Restaurant Business

Most people dream of having a buzzing little establishment with perfect ambiance, a hoard of adoring, loyal customers and a cash register that is brimming with money every night. Nice dream, but it takes a special kind of person to make that a reality.

Key Personal Traits that typify a successful restaurateur.

1. Unwavering Tenacity

The restaurant business is characterized by long hours, customer complaints and an endless list of tasks to perform, and that's before we even get into the strategy! This is not an easy ride and to succeed you will need all the determination at your disposal to get through each week. Ask any chef, restaurant owner or hospitality worker. It is hard to succeed and only the strong survive. You need to stay the course and remain positive in the face of adversity. Most restaurateurs lament about the hard start but also revel in the "tipping point" when their business really took off. Maintaining the momentum is the trick and tenacity is pivotal in achieving this.

2. Attention to detail

Everything comes down to the detail in this game. You are providing an experience for your customer base and if you concentrate on getting the detail right you increase your chances of making that experience meet the customer needs. This trait is so important, not just in terms of the quality control of each dish that is served but also in terms of the kitchen cleanliness, ensuring licences are up to date, that the booking system works, the list goes on... If you have a "devil may care" attitude then you won't last five minutes. Being meticulous about all aspects of you business from the product to the business strategy is absolutely critical.

3. Managing People

You can't run the place yourself. You must recruit and recruit well. You must possess the ability to place trust in your brigade to get the job done in line with your values and strategy. Getting the right chef (assuming you are not one), the right waiting staff and front of house are critical and you have to be able to communicate effectively to motivate and delegate responsibility. When thinking about how to start a restaurant, think about starting a winning team. Managing that team is critical to your success. Teamwork and communication are pivotal skills to ensure success. Empathy and leadership qualities are outstanding traits for the restaurant business.

Key Business Success Factors

1. Do a Restaurant Business Plan

The best advice you can receive when thinking about how to start a restaurant business is to do a business plan. It is absolutely pivotal. The restaurant business is so customer focussed that doing your homework is the difference between success and failure. Market and customer research will enable you to plan your business model effectively to ensure you continually meet the needs of your customers. It will also help you plan your finances to ensure you run an effective operation and don't run out of cash. It's all about seeling an experience in the restaurant game and you need all the right information at hand to ensure you hit the mark and have a strategic plan to explain to a bank or investor to attract the funding you need to open the restaurant. Opening your doors without a business plan is suicide because planning retrospectively while running the business is almost impossible. Prevention is better than cure.

2. Be flexible

Make sure your business strategy is flexible. It will need to be in order to continually meet the needs of those customers. Everything from menu construction, wine list, decor and your marketing strategy must be nimble and react instantly to changes in demand. Most businesses keep monthly financial records but in the restaurant game weekly financials help you keep your finger on the pulse and provide an opportunity to cater changing customer demands to maximise sales. This is where the business plan really becomes valuable. It should evolve with your operation. It is not just a static document used for getting funding. Restaurants with nimble business models are the ones that succeed.

3. Focus On The Customer

This flows directly from the initial research you will have done on your market and customer demographic but the focus on the customer should be first and foremost in your mind. Talk to your customers and ask questions about what they like and what they would like to see changed. Rotate your menu and keep it simple. Long convoluted menus breed confusion and make delivering the meals so much harder for the staff. Your customer will guide you in presenting the best menu and setting to maximise sales. They are the source of your success.

Build a Sustainable Business

If you want to make it to the end of the race you have to never give up. This sounds obvious, but running a restaurant will test your patience and resilience. To get the basics right you have to rely on your research to make sure your business is providing people what they "want" rather than what you think they "need". The most successful restaurants do simple things well and have a definite strategy to evolve and engage customers. They provide a level of service that meets the customers needs and an atmosphere that appeals to the customer's requirements. It may seem like a difficult balance to achieve but if you are committed, creative and base your business model on solid research your chances of being one of the few who do survive will improve significantly.

How To Launch A Successful Home Business?

Are you thinking about becoming a home business owner? Creating your own business is an excellent way to earn an income while being independent and spending more time with your family. Read the following article if you want to learn more about home businesses and how to create yours.

You should not launch your home business before doing a lot of research on your business idea and on the market you are interested in. If possible, talk to other business owners to get a better idea of how they market their products or services. Doing some research on the market you are interested in is essential because it will give you an idea of how your audience will react to your products or services. If you find that the market you are interested in is saturated, look for another business idea. You should also figure out a way to reach out to your audience. A lot of home business owners use the Internet to promote their products or services.

Develop a very detailed business plan. Your business plan can be used to convince investors to help you launch your business. You can also use your plan as a guideline to develop your business. A good business plan should clearly state the goal of your business and explain the strategies you will use to meet these goals. You should include your expectations in term of sales, a cost analysis to figure out how much your products or services will cost you and some reasonable profit expectations.

Find a way to finance your business. Working at home will help you save a lot of money but you will still have to invest in quality equipment and supplies to launch your business. If you cannot afford to purchase everything you need right away, get started with the strict minimum and invest more in your business as soon as you can. You should consider borrowing money to finance your business. Try borrowing from friends or relatives if you can. You can also apply for a business loan if you are confident that your profits will allow you to make your loan payments on time.

Register your business once you are ready to launch it. You should not start selling products or services until your business is properly registered. You can visit the website of the Small Business Administration to download all the forms you need and submit them online. Register your business name with the SBA and with state agencies. You will also have to apply for federal and state permits. You might need additional licenses if you are working with dangerous materials or with food. If you have a hard time with registering your business, find a lawyer who can help you.

How to Start Up A Business

Are you thinking of launching your own business? Or are you launching an internet or magazine business? Maybe you haven't decided yet but you want to start your own business. Maybe you can't stand to wait to work for anyone any longer; or tired of working from eight to five salaries earning, or perhaps you've just had an idea that is too good to waste. Whichever it is, that first entrepreneur seed has been sown, and before long you will be starting your very own business. But how did you grow that seed into a thriving, new business?

The following are lists of suggestions that can help to set up the idea of your business. It might be procedure for millions; rather it is a set of guidelines that can at least help you in starting up a successful business.

1. The first step to start a business is to have an ideal. Of course it's easier to turn an idea into REALITY, if you already have tools and resources! The idea of your business might be a product you've always wanted to make, or a service you feel people might need. It may be online business or internet marketing, It might even be something people don't know, but the idea must be created and be a genuine one!

2. Secondly, to create the idea of your business you need a viable business plan. Creating a business plan helps to predict where your business will be in the future. It summarizes the sense of your business, your vision, what you're about to offer or what options you want to exploit in a single document. It also creates a map for investors, and other interested parties to use when determining how they can best help you and to decide whether your business is practical. For any of your business idea to be viable, therefore need to have a business plan that guides to predict the success of your starting up business.

3. Thirdly, to starting up your business you need a financial Plan. This is one of key to business success. When you develop your financial plan you're giving yourself more power and control over your success. Financial planning will help you to forecast economic fluctuations, tracking your success, and then dictate your short-term and long-term goals realistically. Therefore for your new business to grow and gain the ground, you need a financial planning!

4. Fourth, you need to create a working name. You could even do this before you have an idea about the business, and if the name is good, you may find it helpful to define your business idea. As your plan grows, and things begin to take shape, the perfect name may come to you, but don't let that hinder you in the early phases. Create a name that you can use while you plan, and don't mind changing later.

5. Fifth, Location. It is one of the key to business success. Location of your business is where you be spending the bulk of your day. The office you'll work every possible hour to get your business off the ground during the days. You must focus on the space where you can work efficiently without distractions. Many people forget the important of business venues and this kills their businesses because of lack of proper place to attract their customer's patronage. The progress of your new establishes also depend on your business site.

How to Experience Both Spiritual Fulfillment and Financial Success in Your Business

Have you ever wondered about what it takes to experience both spiritual fulfillment and financial success in your business? Today, I'd like to share with you some best practices that not only I, but also my students, clients and mentors use, and you too must use if you want to experience both spiritual fulfillment and financial success in your business.

The best news is that it's not that difficult to be able to create authentic business success offers (books, programs, products or services) that attract ideal clients who happily join your community, become a super fan and/or purchase your packages even when you're not in front of them. In today's article, I'd like to walk you through my first 3 authentic business success principles of enlightened entrepreneurs. You'll see that once you're able to sink into your heart and soul a little bit, the whole process to be both spiritual fulfilled and financial successful in your business is actually quite magical.

3 Authentic Business Success Principles of Enlightened Entrepreneurs

1. Set an INSPIRED Intention to Authentic Business Success for Everyone Involved

As an enlightened entrepreneur: coach, author, speaker, trainer, leader and expert, what I love to call Enlightened C.A.S.T.L.E., you coach/mentor, write, speak, teach/train, lead workshops/seminars, educate/empower your audience with your expertise and experience. At the same time, you also inspire them to apply the Law of G.A.D.I. (Go And Do It!) on their own way because you enlighten others with your authentic business success (book, program, product or service) offers. So the first and best way to have the outcome and results you most desire is to set an INSPIRED intention to authentic business success for everyone involved in the transformational journey that they will embark on when working with you.

Why? Because when you set an inspired intention to benefit everyone involved in the process of authentic business success you come from a place of service, you come from a place of purity, you come from a place of abundance that is genuinely invested in the authentic success and well-being of everyone involved. It's a win-win-win situation - for you, for your clients and for the IMPACT you are making in the world.

Another reason is that you may know by now that "everything is energy" - including your authentic business success (book, program, product or service) offers. So, I want you to get in a place of sharing your enlightened energy by LOVING that person who you are inviting to say "Yes" to the opportunity you are providing them before you even start sharing your passion and connecting with them.

You want to make sure you are aligned with an INSPIRED intention of serving, not taking. Come from a place of abundance rather than scarcity. Focus on faith instead of fear. Set an INSPIRED intention to authentic business success for ALL and at the same time energetically set yourself up for giving (creating value, positive impact and lasting contribution) rather than taking. This is what we all - enlightened entrepreneurs - are here to do: transform our lives and the lives of those we touch - all while making a REAL difference in the world.

2. Make Your Enlightened Energy (Mental, Spiritual, Emotional and Physical Well-Being) as Much a Top Priority as Your Authentic Business Success

As an Enlightened entrepreneur: C.A.S.T.L.E. setting yourself up to achieve authentic business success, your best practice here is to make your enlightened energy (holistic health and well-being) a top priority along with your authentic business success (book, program, product or service) offers. How do you do that? You create and engage in DAILY rituals / practices to support your mental, spiritual, emotional and physical health and well-being. For example, you take good care of yourself and rest when you need it, you sit with yourself in silence and meditate, if you want to, you invest in yourself and go on personal development trainings and self-care retreats, and much more.

Why? Because these are the things that are NECESSARY to remain in this enlightened energy VIBRATION and fully engaged and conscious with what is happening in your life and around you moment by moment, day by day, week by week so that your mind is ENLIGHTENED, your heart is EMPOWERED and your soul is INSPIRED to create authentic business success offers AND attract your authentic audience - your ideal clients - all while making a POSITIVE IMPACT and INCOME doing what you LOVE!

WARNING: Please don't let your "old programming" trick yourself into believing that your business is more important than your own well-being. It's definitely NOT. Your enlightened energy (holistic health and well-being) is as MUCH IMPORTANT as the BIG vision, BIG message, BIG mission you are DIVINELY DESTINED to share.

3. Take Full Responsibility for Creating Authentic Business Success On Your Own Way.

This is HUGE and a very popular topic in our enlightened entrepreneurial journey.