Cooking Up Your Own Restaurant And The Cost
If you love food and have a passion for cuisine, you might be thinking about taking things one step further and opening up your own restaurant. The question that most people will have to ask themselves is whether or not they can afford to take this step towards running an independent business. To answer this, we need to know how much it costs to set up and run a restaurant so let’s explore some of the different purchases you’ll need to make and ways to perhaps lighten the load of the cost.
The first purchase you’ll need to make when running a restaurant is the building itself. Unless you’re running a B&B, you can’t really add a restaurant to your home, though people have tried this in the past. The only way it’s going to be possible is if your home is isolated enough that turning it into a fully functional business isn’t going to annoy, irritate or vex the neighbors. If your home isn’t isolated, you’ll have no choice but to buy a new building and that will be expensive.
However, depending on the size and scope of the property, you might find it’s the equivalent of purchasing a second home. As such, with a strong deposit and a good deal on a mortgage, this could be a purchase that is affordable though certainly risky. Although, trying to start a business without risk is like trying to fly without wings.
You’ll definitely need to purchase at least a few pieces of equipment for your business. This will include everything from an oven to a food preparation unit and perhaps even a freezer system. It depends on the type of restaurant you’re running. As such, you need to be prepared to spend at least a few thousand on the machinery and tech for your business. With suppliers like Ckitchen.com you can get everything for a few thousand so once you’ve bought the building, this will seem like child’s play.
You need to prepare yourself for the cost of designing the restaurant to be absolutely stunning. Most people don’t buy a ready to run restaurant. Instead, they buy a shell of the building and then work to make it in the image that they want, ensuring it’s a stylish, stunning place that everyone wants to visit and dine at. You can do this again for a few thousand though don’t be surprised if a truly great design costs at least ten.
Last but not least, you’re going to need to hire staff. You can learn more about this on Entrepreneur.com. Be aware that once you start making a profit, this should be a cost that is easy to manage. It should, theoretically, fit into your business budget without affecting your profitability. It’s worth making sure that you only hire a small team of staff here. The reason for this is simple. A small team will be more cost effective, and once you start to make a substantial level of profit, you can always expand.
So, is it affordable to open and run your own restaurant? The answer, it seems could be yes if you are in the position right now to purchase a second home. If not, you will be borrowing a substantial amount of money, but it could be worth it if this has always been your dream business proposition.