What capital do I have? How much money are you willing to invest?
In simple terms, capital is the money available for development or investment to make your business ready and operating. Based on the capital in hand, you will take your decision whether you will go for (fast food, casual dining, fine dining or even catering) the type of business that fits you. After taking the decision on what will you do. Your capital will be classified into Initial capital and working capital. Initial capital is the money to purchase supplies, equipment, products, and complete fit outs, while working capital is the money spent to meet daily operational expenditures of the business. Think of initial capital as money to buy things and working capital as money to pay bills. When determining capital needs for a start-up, calculate the cost of the setup. For a running business, you should compute the costs of expansion and growth.
Why do I need that business?
Do you have a passion for cooking, is it your dream? Do you have a dream of owning a business? A really a wide variety of reasons causes people to open restaurants. Some have giant hearts and want to share their love, some have giant egos and want to share their self appointed sense of good taste. Some just believe the lies fed by the celebrity/glamour/TV industry and lose their money. Some grew up in it and know nothing else; others can’t imagine anything they’d rather do. Which one are you? OR you only think of a profitable business?
What experience/background do you have that will help that business?/ where do you think you will fit most?
Which department of your business do you know much Finance, marketing, operation, cooking?
Do I have partners?
If yes, who will be involved in the operation?
If no, and you are afraid of the big step to find someone that assists you through your journey, such as a professional consultant can help you through all aspects of the business.
How are you going to operate the business?
Lack of restaurant operation and management skills are the main reasons behind the failure of many new restaurants. So try to be wise enough while choosing your operation team. Hire the talented, experienced and honest staff that will make your business successful if you don’t have the needed experience to lead your business. Then comes your role of monitoring your business.
Do you have a manager /chef that will be working with you?
They are the core of your project so don’t hurry and choose them wisely because they are the ones that will help to shape your success dream. Your success as the owner of a restaurant is going to largely depend on your choice of manager. Hiring the right person for this position means finding the individual who is able to deal effectively with people and solve issues quickly and correctly in what is often a chaotic environment. Your selection requires good interviewing skills, the ability to actively listen to candidates and the willingness to put in the time to properly evaluate potential employees.
What is your concept idea? / Do you have a concept in mind?
Do your homework and don’t rush Concept development for a restaurant involves planning details for many practical issues instead of just choosing a style of cuisine. Choosing whether a restaurant focuses on upscale, casual or fast food is important, but other critical issues in developing your concept include planning restaurant design, studying competitive challenges, researching market demographics, and developing a financing strategy. A strong concept exploits culinary trends, develops a branding strategy, identifies suppliers, and analyzes whether to franchise the concept
Who are your concept competitors around?
Your restaurant may serve the most delicious food or provide the best table service in your area. But if you do not know the strengths and weaknesses of your business or the opportunities and threats facing your business, your business may suffer. As you prepare to perform your SWOT analysis, invite your restaurant manager as well as your chef and assistant managers to get involved so you gain more insight from different points of view.
What is your source of restaurant experience?
Restaurant Consultant, Google, manager or experienced friend.
Signature
HMC Egypt – F&B consultant