5 Mistakes New Restaurant Owners Make

5 Mistakes New Restaurant Owners Make


(gentle upbeat music) – There are a number of
things that can go wrong when starting your
restaurant but these five are the most common. So the first mistake
that many start-ups make is being under capitalized. Despite all your planning and work, you’re not gonna make
a profit from day one. It’s important that your
business has enough capital to weather early struggles. The second mistake that
a lot of start-ups make is operating structure. Many times the selection
of an operating entity can depend on the state laws in place where you’re looking to
open your restaurant. One thing to consider on the
structure that you choose is how is it gonna be funded? Are you gonna have 50 partners or are you gonna do this
through yourself through a loan? The third issue we see with start-ups is not having a proper
accounting system in place. Whether you have an internal accountant or whether you are looking
for an outside bookkeeper, CPA, it’s important that you
have an accounting software in place from day one. Not only is it important to have a good point of sales system
to ring up your sales but you’ve also gotta have
a good accounting system that’s integrated with that
point of sales software. You need these system in place to make sure you stay on budget and to make sure that you’ve
tracked all your expenses long before the doors open. Another common mistake that start-ups make is inadequate staffing. You’ve gotta make sure you plan
for the number of employee’s that are needed for the
front end and back end of the restaurant. You’ve gotta make sure
that you think about, you know, the right software for payroll, what type of provider
you’re gonna get there, what reports can be provided so you can watch your labor costs. Your managers have to look at
that on a day-to-day basis, they’ve gotta know when
they’ve gotta staff up, what times of the day
do you need more staff, what times of the day
do you need less staff, they’ve gotta be able to have reports that help them to understand
what staffing needs are to keep those labor
costs under control. The last mistake we see a lot of start-ups make is location. You know, a lot of time is
spent looking at locations based on how visible you’re gonna be but you’ve also gotta consider
the cost of those locations. So we can run numbers for
clients to help them decide whether they wanna buy or
whether they wanna rent, does it make more sense
depending on the location that they’ve chosen.

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