Tips to Avoid Overspending on your Restaurant Startup
Starting Up Without Breaking the Bank – How to Avoid Overspending on Your Restaurant Startup
If you are thinking about starting a restaurant, then congratulations! You are embarking on an exciting adventure, and one that can be very rewarding. However, you are also taking a big risk. It can be hard to make money in the restaurant business, and you are going to have to be careful – you could end up overspending in the early stages and wind up operating in the red before you’ve even really gotten started.
So, how do you avoid losing money right out of the gate? You need to be realistic. With that in mind, let’s talk about some of the areas in which new startups typically overspend.
Don’t be the equivalent of the consumer who has to have the newest iPhone the minute it comes out. Of course we rely on technology in our day to day lives, but be realistic. If you’re operating, say, a 12-seat capacity coffee shop, does your wait staff really need iPads to take orders, or can they get by with an old-school order pad and pen?
That said, don’t skimp on wifi. Your customers are going to expect to be able to be online.
Of course you want a bright, shiny new kitchen, but can you really afford it? Chances are you can get great deals on second-hand equipment – probably from out-of-business restaurants that overspent on it.
You need the right equipment, but it doesn’t have to be brand spanking new.
Make a budget, and research your marketing options. You may find that it's best to spread your advertising dollars out over the local newsmagazine, quality print materials, effective signage, and the internet.
Unless you’re looking for a very high-end clientele, you don’t have to import your wallpaper from France or buy costly antiques, and you probably don’t need to hire a decorator. Look at other, similar restaurants in your area, see how they’re doing it, and don’t be afraid to copy a bit while still putting your personal stamp on the décor.
So know as you’re starting up your new restaurant, you are going to have a ton of expenses. Make a budget, stick to it, and don’t go overboard. You can always add new features later, but if you try to do it all right out of the gate, you could be setting yourself up to fail.