If you’re getting ready to open a restaurant, you probably know just how much work your endeavor is going to involve, and just how much capital you’re going to need. Restaurant business loans are very popular, especially since restaurants have large amounts of overhead cost and very little profit margin in the first few years. Before you start considering restaurant loans start up your thinking cap. You’re going to need a business plan to apply for a restaurant business loan, and that plan needs to be detailed. Here, we’ll provide a few considerations you might want to include in your business plan.
- Used restaurant equipment is a great way to save. Gently used pieces of equipment can often be found for pennies on the dollar.
- Consider a point of sale (POS) system instead of a cash register. It will not only track sales, but menu items, employee work schedules, and reservations.
- Hire carefully, especially when you choose a bartender. Good bartenders will draw business because they not only know how to pour drinks, but how to read customers and make them comfortable.
- Stock wisely.It’s important to purchase equipment and dishes designed for commercial use. They’re more expensive than household ones, but that’s because they’re designed to stand up to the heavy demands of the food industry.
- Don’t wait on a liquor license. It can take several weeks for a liquor license to be approved, and not having one in time for opening day either means you have to put off your grand opening or open without drinks.
- Design menus thoughtfully and include one with your business plan when you apply for a restaurant business loan. Don’t align the prices, as it invites customers to compare prices. Also, make sure you choose a font that’s easy to read. Avoid cursive, all bold, or all caps text, and stick with 12-14 point font.
- Choose a unique name. Try not to choose one that resembles another restaurant’s name too closely. That’s just asking for legal trouble, and you don’t want to have to field lawsuits while you’re trying to get off the ground.
- Invest in advertising. That might include internet marketing, TV spots, or print advertising. It might get pricey, but it’s well worth it if it’s done well.
Before you go out and apply for a restaurant business loan, have a plan on paper that shows lenders that you’ve given due credence to important issues. A complete business plan represents a less substantial risk and puts you in a better position to succeed. More like this article.